Equitas Small Finance Bank shares debut at Rs 31, a 6% discount to IPO price

Equitas Small Finance Bank shares failed to cheer investors on November 2 as it debuted at a 6 percent discount to its issue price.

The stock opened lower by 6.06 percent at Rs 31 on the BSE, while it was down 5.76 percent at Rs 31.10 at open on the National Stock Exchange, against issue price of Rs 33 per share.

It was largely on expected lines given the tepid response to its public issue which was subscribed 1.95 times during October 20-22 and weak market conditions, experts feel.

"While the operating environment remains challenging amid the COVID-19 pandemic, recent collection efficiency and moratorium position signal an improving trend. We remain positive on Equitas SFB given its diversified loan portfolio, well-managed asset quality, strong capital position, extensive distribution network and healthy growth prospects of the SFB industry," Anand Rathi said.

Equitas Small Finance Bank raised nearly Rs 518 crore via public issue which comprised of a fresh issue of Rs 280 crore and an offer for sale of 7.2 crore equity shares by promoter Equitas Holdings.

The promoter has to reduce its shareholding in Equitas Small Finance Bank to 40 percent of its paid-up equity within five years from the commencement of its banking business.