ESAF
IPO Size
`518 Cr
Price Band
`32-33 Per Share
Minimum Lot Size
450 Share
Face Value
`10 Per Share
Employee Discount
NA
Retail Allocation
35%
Issue Open Date
20 Oct 2020
Issue Close Date
22 Oct 2020
Listing Date
IPO Size
Price Band
Minimum Lot Size
Face Value
Employee Discount
Retail Allocation
Issue Open Date
Issue Close Date
Listing Date
Equitas Small Finance Bank is the new age social bank which focuses on expanding the banking horizon to new unbanked/underbanked area. The bank had started its journey in 1992 as a Non-Government Organization with a vision of vision of sustainable and holistic transformation of the poor and the marginalized. After evaluating the contributions and significance of ESAF in the development of rural and unreached segments of the nation, the Reserve Bank of India issued an in-principle license to ESAF Microfinance and Investments Pvt. Ltd. to set up a new Small Finance Bank during October, 2015.
As per the CRISIL report, ESAF, the subsidiary of Equitas Holdings is the largest small finance bank in India considering banking outlets and the 2nd largest small finance bank considering assets under management and total deposits. The microfinance bank provides loans for housing, vehicles and micro and small enterprises. In addition with loan disbursement, the microfinance bank provides facilities of salary accounts, current accounts, mutual fund products, third party insurance and ATM-cum-Debit cards.
| S.No. | 1 - Company | 2 - Directors | 3 - Promoters | |||
| Entity Name | By the Company | Against the Company | By the Director | Against the Director | By the Promoter | Against the Promoter |
| Criminal cases | 1,404.73 | - | - | - | - | - |
| Material civil cases | - | - | - | - | - | - |
| Taxation matters | - | 20.13 | - | - | - | 104.05 |
| Regulatory Procedings | - | 18.75 | - | - | - | - |
| Amt. (In Million Rs.) | 1,404.73 | 38.88 | - | - | - | 104.05 |
| Income Statement (In Millions.) | Mar'20 | Mar'19 | Mar'18 |
| Interest Earned | 26,454.44 | 21,119.34 | 15,316.88 |
| Other Income | 2,823.51 | 2,828.98 | 2,412.15 |
| Total Income | 29,277.95 | 23,948.32 | 17,729.03 |
| Interest Expended | 11,501.38 | 9,602.00 | 6,711.47 |
| Net Interest Income | 14,953.06 | 11,517.34 | 8,605.41 |
| Operating expenses | 11,800.79 | 10,084.87 | 8,811.13 |
| Total Expenses | 23,302.17 | 19,686.87 | 15,522.60 |
| Operating Profit Before Provisions and Contingencies | 5,975.78 | 4,261.45 | 2,206.43 |
| Provision | 3,539.43 | 2,155.79 | 1,888.12 |
| Net Profit for the Year | 2,436.35 | 2,105.66 | 318.31 |
The promoters of the company are Kadambelil Paul Thomas and ESAF Financial Holdings Private Limited.
The IPO belongs to that kind of sector which is full of players with enough potential and strong financials. The microfinance bank will face tough competition after listing and investors should give a second thought on inculcation of the small finance bank in the portfolio. In the listed space, the competitors of the ESAF are Credit Access Grameen Bank, Spandana Spoorthy, AU Small Finance Bank and Bharat Financial Inclusion.
The object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to 7, 20,00,000 Equity Shares held by them. The company will not receive any proceeds from the Offer for Sale. Offer for Sale Size is of 7,20,00,000 Equity Shares having ₹10 aggregating up to Rs.238 Cr at the upper price band of Rs. 33.
The company has planned to raise fresh capital comprising an aggregate of 8 crore shares having ₹10 aggregating up to Rs. 280 Cr. The net proceeds from the issue will be utilized for augmenting Bank’s Tier 1 capital base to meet future capital requirement.