Kerala-based ESAF Small Finance Bank has received Sebi's approval to launch an initial public offering (IPO).
Sebi issued the final observations to the lenders' proposal on March 20, 2020, according to the information published on regulator's website.
The company had filed its Draft Red Herring Prospectus (DRHP) on January 6, 2020, for its Rs 976 crore IPO.
As per the DRHP, the IPO comprises of a fresh issue worth Rs 800 crore and an offer for sale (OFS) aggregating up to Rs 176.2 crore.
The bank, in consultation with its merchant bankers, may consider a pre-IPO placement of up to Rs 300 crore. If it is undertaken, the amount raised will be reduced from the fresh issue, the DRHP stated.
The book running lead managers to the offer are Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities.The small finance bank would use net proceeds from the fresh issue towards augmenting the tier 1 capital (primarily loans/advances and investment portfolio) to meet future capital requirements.