The IPO comprises a fresh issue aggregating up to Rs 550 crore and an offer for sale of up to 8 crore equity shares by Equitas Holdings.
Equitas Small Finance Bank, a subsidiary of Equitas Holdings, on December 16 filed the draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
The IPO will comprise of a fresh issue aggregating up to Rs 550 crore and an offer for sale of up to eight crore equity shares by Equitas Holdings.
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, the release said.
Sources told Moneycontrol that the bank expects to raise around Rs 1,000 crore through the issue.
Equitas SFB has proposed to utilise the net 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.
Bank offers a range of banking products and services to customers with a focus on serving the financially unserved and underserved customer segments in India.
Equitas SFB has been providing housing finance since 2011 through EHFL. The company has also been providing vehicle finance and MSE finance through the erstwhile NBFC that received its asset finance license in 2012, primarily to economically disadvantaged households.
JM Financial, Edelweiss Financial Services and IIFL Securities are the book running lead managers to the issue. The company plans to list the equity shares on the BSE and NSE.
Shares of Equitas Holdings closed at Rs 103.50 on the BSE, up Rs 1.90, or 1.87 percent today.In the small finance bank space, Ujjivan Small Finance Bank was the first to list on the bourses on December 12 with a bumper premium of 56 percent over the issue price of Rs 37. The bank raised Rs 750 crore through the public issue on December 2-4.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.