ESAF Small Finance Bank IPO is set to open for subscription on November 3 and will close on November 7. Through the public issue, the bank aims to raise Rs 463 crore. The price band for the issue has been fixed at Rs 57-60 per share.
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ESAF Small Finance Bank’s net profit surged 452 percent to Rs 302.33 crore in the financial year ended March 2023 compared to Rs 54.73 crore in the year-ago period. Net interest margin jumped 60% to Rs 1,836.34 crore in FY23 against Rs 1,147.14 crore in FY22.
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ESAF Small Finance Bank’s AUM growth has aligned with the industry peers. AU Small Finance Bank and Equitas SFB reported a 25 percent CAGR during FY21-23, while Ujjivan SFB recorded a 26 percent CAGR. Jana SFB grew steadily at 18 percent, ESAF SFB surged with a 39 percent CAGR, and Utkarsh SFB reported a 29 percent CAGR in the same period.
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ESAF Small Finance Bank had the best asset quality among compared peers as of June 30, 2023. ESAF SFB GNPA stood at 1.65 percen, AU Small Finance Bank at 1.76 percent, while Equitas SFB and Ujjivan SFB had slightly higher GNPA figures at 2.75 percent and 2.62 percent, respectively. Jana SFB reported a GNPA of 2.9%, and Utkarsh SFB’s GNPA was at 3.13 percent.
ESAF Small Finance Bank’s valuation is cheaper than its peers. CreditAccess Grameen Ltd leads with a high P/BV of 4.25, while Ujjivan SFB and Equitas SFB follow with P/BVs of 2.71 and 2.16, respectively. Bandhan Bank and ESAF Small Finance Bank have P/BVs of 1.85 and 1.46, and Suryoday SFB has the lowest at 1.1.
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Pre-offer, promoters holding in the ESAF Small Finance Bank stands at 74.43% and public shareholding is at 25.57 percent. Post-offer, the promoter's stake will come down to 63.39% while public shareholding will rise to 36.61 percent.
