ESAF Small Finance Bank IPO: ESAF Small Finance Bank launched an initial public offer (IPO) on Friday, November 3, to raise an estimated Rs 463 crore. The subscription window for the public offer of the Kerala-headquartered small finance bank will be available from 10 am to 5 pm, for three trading days ending Tuesday, November 7. 

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The IPO of ESAF Small Finance Bank comprises fresh issuance of equity worth Rs 391 crore, and an offer for sale (OFS) amounting to Rs 72 crore by promoters and existing shareholders.

Here are some of the key things to know about the upcoming ESAF Small Finance Bank IPO:  

ESAF subscription status

ESAF Small Finance Bank's share sale received bids for 4,22,30,07,500 crore shares against 5,77,28,408 shares on offer, an overall subscription of 73.15 times.

Category Subscription (No. of times the equity reserved)
Qualified institutional buyers  173.52
Non-institutional investors 84.37
Retail investors 16.97
Overall 73.15
Source: Exchange data

ESAF Small Finance Bank IPO review: Should you apply? Here' what Anil Singhvi suggests

Anil Singhvi suggests subscribing to the issue for a good listing gain and for the long term. He points out the following key points about the company: 

Positive:

  • Valuations attractive on the book value and RoE fronts
  • Strong background of promoters 

Negative:

  • Mostly present in southern parts of the country

Important dates 

The basis of the allotment of shares under the IPO of ESAF Small Finance Bank is set to be finalised tentatively on November 10. Successful bidders will get shares credited into their demat accounts on November 15, and other participants will have refunds initiated on November 13. ESAF Small Finance Bank shares are likely to be listed on stock exchanges BSE and NSE on November 16. 

Issue price & lot size 

Under the IPO, potential investors will be able to bid for ESAF Small Finance Bank shares in a price range of Rs 57-60 apiece, in multiples of 250 shares, translating to Rs 14,250-15,000 per lot. 

ESAF Small Finance Bank IPO: Fund utilisation 

The lender plans to utilise the proceeds from the issue towards augmenting its Tier-I capital base to meet its future capital requirements, ensuring compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time, and availing the benefits of listing the equity shares on the bourses. 

ESAF Small Finance Bank IPO: Book-running lead managers 

ICICI Securities, Dam Capital Advisors and Nuvama Wealth Management are the book running lead managers for the issue, whereas Link Intime India is the registrar. 

What does ESAF Small Finance Bank do? 

Incorporated in 1992, ESAF Small Finance Bank is a small finance bank primarily focuses on providing loans to rural and semi-urban customers. 

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