Equitas Small Finance debuts at 5.6% discount

Equitas Small Finance Bank made a discounted debut on Monday. The stock was listed at Rs 31.10, a discount of 5.6% over its issue price of Rs 33.

Equitas Small Finance Bank made a discounted debut on Monday. The stock was listed at Rs 31.10 on the NSE, a discount of 5.6% over its issue price of Rs 33.

The stock fell further to Rs 30.05. The initial public offering (IPO) of the private bank raised Rs 518 crore. It was subscribed 1.95 times.

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“However, management has indicated that it would seek permission to do away with the holding company structure on completion of five years as a bank or may look at OFS/M&A as the options to reduce promoter stake to 40% and below, and also apply for a universal banking license at an appropriate time,” analysts at Emkay Global Financial Services stated.

Equitas Small Finance Bank is the largest small bank in the country in terms of number of outlets, and the second largest in terms of assets under management (AUM) as of FY 2019.