MUMBAI, 16 DECEMBER, 2019 (GPN): Equitas Small Finance Bank Limited (Equitas SFB) the largest SFB in India in terms of number of banking outlets, and the second largest SFB in India in terms of assets under management and total deposits in Fiscal 2019. (Source: CRISIL Report), filed its DRHP with SEBI.
Equitas SFB have been able to successfully diversify their loan portfolio and significantly reduce dependence on microfinance business as compared to other microfinance companies that have converted to SFBs (Source: CRISIL Report). They offer a range of banking products and services to customers with a focus on serving the financially unserved and underserved customer segments in India. The Company’s strength lies in promoting financial inclusion within these segments, with their group beginning operations in 2007 as an NBFC providing microfinance loans through EMFL (Equitas Micro Finance Limited).
The IPO Initial Public Offering (IPO) comprises of a fresh issue aggregating up to Rs. 5,500 million (the “Fresh Issue”) and an offer for sale of up to 80,000,000 equity shares by Equitas Holdings Limited (the “Promoter Selling Shareholder, and such equity shares the “Offered Shares”). The offer includes a reservation of up to Rs. 1,000 million, for subscription by eligible EHL shareholders (“EHL Shareholder Reservation Portion”) and a reservation aggregating up to Rs. 50 million, for subscription by eligible employees (the “Employee Reservation Portion”).
Equitas SFB proposes to utilize the Net Proceeds from the Offer towards augmenting Bank’s Tier I capital base to meet the Bank’s future capital requirements.
JM Financial Limited, Edelweiss Financial Services Limited and IIFL Securities Limited are the Book Running Lead Managers (BRLMs) to the issue.
The equity shares will be listed on BSE and NSE. ENDS
About Equitas Small Finance Bank Limited
Equitas Small Finance Bank Limited (Equitas SFB) are the largest SFB in India in terms of number of banking outlets, and the second largest SFB in India in terms of assets under management and total deposits in Fiscal 2019. (Source: CRISIL Report). The Company has been able to successfully diversify their loan portfolio and significantly reduce dependence on microfinance business as compared to other microfinance companies that have converted to SFBs (Source: CRISIL Report). Equitas SFB offers a range of banking products and services to customers with a focus on serving the financially unserved and underserved customer segments in India. Their strength lies in promoting financial inclusion within these segments, with the group beginning operations in 2007 as an NBFC providing microfinance loans through EMFL. 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. While the business model has transitioned over the years, the provision of sustainable credit to unserved and underserved segments has remained their core focus.
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