Equitas Small Finance Bank IPO: Dates, price band & other details

Mumbai: Equitas Small Finance Bank’s (SFB) initial public offer (IPO) to raise up to Rs 518 crore will open for subscription on October 20. The price band for the issue has been fixed at Rs 32-33 per share.

The offer from the unit of Equitas Holdings will comprise a fresh issue of shares worth Rs 280 crore and an offer for sale (OFS) of 7,20,00,000 shares by the parent company.

The objective of the fresh issue is to augment the bank’s tier-I capital base to meet their future capital requirements such as organics growth and expansion.


Qualified Institutional Buyers (QIB) will get to bid for 50 per cent of the offer, while retail investors will bid for 35 per cent. Fifteen per cent quota, meanwhile, is retained for Non-institutional Investors (NII).

Investors can bid for a minimum lot of 450 equity shares and in multiples thereof.

While the company earlier planned to hit the market with a Rs 1,000 crore IPO, the issue size was recently slashed by nearly 50 per cent.

“The size was reduced by around half as we are reasonably comfortable on our capital adequacy ratio and given the current (market) circumstances,” PN Vasudevan, MD & CEO of Equitas Holdings told reporters in a virtual media interaction.

Earlier in March, Equitas SFB had deferred its IPO due to coronavirus-led weak market conditions.

JM Financial, Edelweiss Financial Services and IIFL Securities are appointed as book-running lead managers to the issue.