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Last Updated : Mar 20, 2020 04:12 PM IST | Source: Moneycontrol.com

Equitas Small Finance Bank postpones IPO, becomes 3rd victim of COVID-19

The issue consisted a fresh issue of Rs 550 crore and offer for sale of 8 crore shares by parent firm Equitas Holdings.

 
 
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Equitas Small Finance Bank on March 18 said it will defer the launch of its initial public offering due to coronavirus-led weak market conditions.

Equitas is the third victim of COVID-19 that battered not only global equity markets but also commodities.

Indian equities have so far corrected nearly 32 percent from record highs seen in January this year.

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Fast food restaurant company Burger King and specialty chemicals manufacturer Rossari Biotech were two others who postponed their IPOs scheduled to open on March 18. Antony Waste Handling Cell chose to withdraw its IPO due to market conditions.

The carnage on the Street also affected the listing of SBI Cards and Payment Services. The stock traded at Rs 689.25 per share, down 8.7 percent from its issue price of Rs 755 per share.

Equitas management said the IPO of Equitas Small Finance Bank will be delayed as the market is volatile and it is not an opportune moment to get listed on bourses, according to a CNBC-TV18 report.

"We need to see what's good for the bank while getting listed," they added.

Equitas Small Finance Bank had received approval from the capital market regulator SEBI to launch the IPO on March 3.

The draft red herring prospectus for IPO was filed by the company in December last year.

The issue was slated to consist of a fresh issue of Rs 550 crore and offer for sale of 8 crore shares by parent firm Equitas Holdings.

The bank, in a statement to Moneycontrol said, "Please note that the Bank is proposing an IPO subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations. The timing of the opening of the IPO will be decided by the Company and Promoter Selling Shareholder after discussion/ deliberation with the BRLMs and after taking their feedback on suitability of market conditions; as well as feedback from various stakeholders and influentials. As soon as any decision is taken, we shall inform you appropriately. Till then any story on IPO timing is speculation and factually incorrect and misleading."

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First Published on Mar 18, 2020 07:18 pm
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