The initial public offer (IPO) of ESAF Small Finance Bank received bids for 47,92,07,250 shares as against 5,77,28,408 shares on offer, according to stock exchange data at 17:00 IST on Monday (6 November 2023). The issue was subscribed 8.30 times.

The issue opened for bidding on Friday (3 October 2023) and it will close on Tuesday (7 November 2023). The price band of the IPO is fixed at Rs 57-60 per share. An investor can bid for a minimum of 250 equity shares and in multiples thereof.

The IPO comprises fresh issue of equity shares worth upto Rs 390.7 crore and an offer for sale of upto Rs 72.3 crore.

Among the promoters, ESAF Financial Holdings is proposing to raise Rs 49.26 crore in OFS. Among the selling shareholders, PNB MetLife is raising Rs 12.67 crore and Bajaj Allianz Life Rs 10.37 crore. The promoter and promoter group shareholding would decline to 63.4% post IPO from 74.4% pre-IPO.

The bank proposes to utilize the Net Proceeds from the offer towards augmenting banks tier I capital base to meet future capital requirements.

Ahead of the IPO, ESAF Small Finance Bank on Thursday, 2 November 2023, raised Rs 135.14 crore from anchor investors. The board allotted 2.25 crore shares at Rs 60 each to 14 anchor investors.

ESAF Small Finance Bank incorporated in 2016 is a small finance bank (SFB) promoted by ESAF Financial Holdings. On the advances side, the bank offers micro loans, retail loans, MSME loans; loans to financial institutions; and agricultural loans.

The bank has a wide network of 700 banking outlets, 767 customer service centers, 22 business correspondents, 2,116 banking agents, 525 business facilitators and 559 ATMs spread across 21 states and two union territories, serving 7.15 million customers as of 30 June 2023.

The bank reported a net profit of Rs 129.96 crore and net total income of Rs 678.48 crore for the three months ended on 30 June 2023.