Equitas Small Finance Bank, the subsidiary of Equitas Holdings, on March 3 received Securities and Exchange Board of India's (SEBI) approval to launch initial public offering.
The issue consists of a fresh issue of Rs 550 crore and an offer for sale of 8 crore equity shares.
Equitas SFB had filed the draft red herring prospectus with the SEBI on December 16 last year.
The offer includes a reservation of up to Rs 100 crore for subscription by eligible shareholders of Equitas Holdings and a reservation aggregating up to Rs 5 crore for subscription by eligible employees.
Equitas SFB has proposed to utilise the net fresh issue proceeds from the offer towards augmenting its Tier I capital base to meet the future capital requirements.
Equitas Small Finance Bank is the largest SFB in India in terms of the number of banking outlets, and the second-largest in India in terms of assets under management and total deposits in fiscal 2019.
JM Financial, Edelweiss Financial Services and IIFL Securities are the book running lead managers to the issue.
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