ESAF Small Finance Bank Ltd, which is a Small Finance Bank with a focus on unbanked and under-banked customer segments, especially in rural and semi urban areas has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise Rs 629.04 crore through for its Initial Public Offering (IPO).
In July 2021, the Bank had previously submitted its DRHP.
A new issue of up to Rs 486.74 crore and an offer to sell for up to Rs 142.30 crore from the Promoter and other selling shareholders will be included in the IPO.
The proposal available to be purchased includes up to Rs 119.26 crore by ESAF Monetary Property Private Restricted, up to Rs 12.67 crore by PNB MetLife India Insurance Agency Restricted, up to Rs 10.37 crore by Bajaj Allianz Life coverage Organization Restricted.
The Deal is being made through the Book Building Process, wherein not over half of the Net Proposition will be accessible for designation on a proportionate premise to Qualified Institutional Purchasers, at least 15% of the Net Deal will be accessible for distribution to Non-Institutional Bidders and at the very least 35% of the Net Deal will be accessible for portion to Retail Individual Bidders.
The company, in discussion with the lead brokers to the issue, may consider a further issue of value shares by a confidential position or some other technique collecting up to Rs 97.33 crore (“PRE-Initial public offering Situation”). The size of the new issue will decrease if this placement is carried out.
According to the DRHP, the returns from the New Issue will be utilized towards expanding the Bank’s Level – I capital base to meet its future capital prerequisites.
In 2006, Kadambelil Paul Thomas and others gained the Corporate Advertiser of EASF Little Money Bank. Through a business transfer agreement, the ESAF Foundation’s microloan business was later transferred to the Corporate Promoter in 2008. In 2014, the Corporate Promoter became an NBFC-MFI. Over the course of more than 27 years, the Promoters have primarily served the needs of the unserved and underserved with an emphasis on promoting financial inclusion.
