Equitas Small Finance Bank Ltd IPO (Equitas Small Finance Bank IPO) Detail

Oct 20, 2020 - Oct 22, 2020

Incorporated in 1993, Chennai based Equitas Small Finance Bank Ltd (ESFBL) was the largest small finance bank in India in Fiscal 2019 considering banking outlets and the 2nd largest small finance bank considering assets under management and total deposits. Unlike other microfinance companies, it has a diversified loan portfolio and less dependence on microfinance business. With the main focus on financially unserved and underserved customers, the bank offers a wide range of banking products and services.

The company provides microfinance loans promoting financial inclusion, housing finance, vehicle finance, and MSE finance. Equitas Small Fin Bank offers financial products according to customers' income profile, type of security available and nature of business.

Apart from this, the bank also provides current accounts, salary accounts, savings accounts, other deposit accounts, ATM-cum-debit cards, mutual fund products, third party insurance, and issuance of FASTags.

ESFBL follows credit assessment procedures through a risk management framework which is analyzed by its Risk Management Committee. As on 30th Sep 2019, it has the largest distribution channel among Small Finance Banks (SFBs) including 853 Banking Outlets and 322 ATMs in India across 15 states and union territories.

Competitive Strengths

1. A customer-centric organization with a focus on unserved and underserved segment
2. A well-diversified asset portfolio as SFB
3. Strong retail liability portfolio
4. Credit assessment procedures

Company Promoters:

Equitas Holdings Limited is the promoter of the company.

Company Financials:

Summary of financial Information (Restated)
Particulars For the year/period ended (₹ in Million)
30-Jun-20 31-Mar-20 31-Mar-19 31-Mar-18
Total Assets 208,921.39 193,145.47 157,626.91 133,011.50
Total Revenue 7,509.68 29,277.95 23,948.32 17,729.03
Profit After Tax 576.71 2,436.35 2,105.66 318.31

Objects of the Issue:

The bank proposes to utilize the Net Proceeds from the fresh issue offer towards augmenting the Bank's Tier I capital base to meet the future capital requirement.

Equitas Small Finance Bank IPO Details

IPO DateOct 20, 2020 - Oct 22, 2020
Issue TypeBook Built Issue IPO
Issue Size[.] Eq Shares of ₹10
(aggregating up to ₹517.60 Cr)
Fresh Issue[.] Eq Shares of ₹10
(aggregating up to ₹280.00 Cr)
Offer for Sale72,000,000 Eq Shares of ₹10
(aggregating up to ₹237.60 Cr)
Face Value₹10 per equity share
IPO Price₹32 to ₹33 per equity share
Retail Discount₹0
Employee Discount₹0
Market Lot450 Shares
Min Order Quantity450 Shares
Listing AtBSE, NSE

Equitas Small Finance Bank IPO Tentative Date / Timetable

Bid/Offer Opens OnOct 20, 2020
Bid/Offer Closes OnOct 22, 2020
Finalisation of Basis of AllotmentOct 27, 2020
Initiation of RefundsOct 28, 2020
Credit of Shares to Demat AcctOct 29, 2020
IPO Shares Listing DateNov 2, 2020

Equitas Small Finance Bank IPO Lot Size and Price (Retail)

ApplicationLotsSharesAmount (Cut-off)
Minimum1450₹14,850
Maximum135850₹193,050

Equitas Holdings (EHL) Shareholders Reservation in IPO

Investors who hold EHL shares on October 11, 2020, are eligible to apply under the shareholder's category of Equitas Small Finance Bank IPO. The company reserved 10% of the offer for Shareholders (approximate ₹51 Cr). The EHL shareholders can apply up to ₹2 lakh in the Shareholders category. EHL shareholders can also apply under the retail category. Further, if an EHL shareholder is also an employee, he/she is also eligible to apply in all the three categories- RII (up to ₹2 lakhs), Shareholder (up to ₹2 lakhs) and Employees (up to ₹5 lakhs).

Equitas Holdings Employees Reservation in IPO

Full-time or permanent employees of EHL can apply in the SBI Employees category of Equitas Small Finance Bank IPO. The maximum limit defined to apply in the Employee category is ₹5 lakhs. The maximum allotment to employees cannot be above ₹2 lakhs when the category is fully or oversubscribed. In case of under-subscription in the employee category, the unsubscribed portion will be available for allocation, proportionately to all Eligible Employees who Bid above ₹2 lakhs, subject to a maximum limit not exceeding ₹5 lakhs.

Investors Portion and Basis of Allotment

CategoryPercentage of Offer sizeBasis of Allotment
QIBNot More than 50%Proportionate
NIINot less than 15%Proportionate
RetailNot less than 35%Minimum 1 lot to each investor, subject to availability.
EmployeeNot More than 5% of the post-offer paid-up equity share capitalProportionate*
ShareholdersNot More than 10%Proportionate**
  • * Unless the Employee Reservation Portion is under-subscribed, the value of allocation to an Eligible Employee shall not exceed ₹200,000. In the event of under-subscription in the Employee Reservation Portion, the unsubscribed portion may be allocated, on a proportionate basis, to Eligible Employees Bidding in the Employee Reservation Portion for value exceeding ₹200,000, subject to total Allotment to an Eligible Employee not exceeding ₹500,000.
  • ** Subject to minimum Bid Lot

Important Clarifications

  • Zerodha allows 1 IPO application per customer even though the option is available for applying in the retail and shareholders category. To apply the 2nd application, please use your net banking facility.
  • The shareholder list is prepared on PAN. Shareholders can apply from a different demat account (on the same name) where they do not hold EHL shares.
  • An investor will be identified by the PAN Number and not the Demat Account.
  • When using UPI as a payment method, the primary account holder in the bank and demat should be the same person. Use of 3rd party UPI ID or 3rd party bank account is not allowed.
  • When using ASBA, up to 5 IPO applications can be applied from the same bank, if the bank offers this facility. Public sector banks (like SBI) offer this facility.
  • Minors can only apply using ASBA from the banks that offer the 3rd Party ASBA IPO application. i.e. SBI. Click here for more detail.

DRHP Addendum

Date: September 25, 2020

Pursuant to relaxation permitted by SEBI, the company had filed an addendum to its DRHP revising its Offer Size for the proposed IPO of its equity shares as below:

  • the size of the Fresh Issue has been reduced from up to ₹5,500 million to up to ₹2,800 million;
  • the number of Equity Shares offered through the Offer for Sale by the Company, has been reduced from up to 80,000,000 Equity Shares to up to 72,000,000 Equity Shares;
  • the Employee Reservation Portion for Eligible Employees has been reduced from up to ₹50 million to up to ₹10 million; and
  • the EHL Shareholder Reservation Portion for Eligible EHL Shareholders has been reduced from up to ₹1,000 million to up to ₹510 million.

Equitas Small Finance Bank IPO Subscription Status (Bidding Detail)

Equitas Small Finance Bank IPO how much subscribed?

No. of Times Issue Subscribed (BSE + NSE)

As on Date & Time

QIB

NII

RII

Employee

Others

Total

Shares Offered

27,975,001

21,487,500

50,137,500

312,500

15,937,500

115,850,001

Oct 22, 2020 17:00

3.91x

0.22x

2.08x

1.84x

0.42x

1.95x

Equitas Small Finance Bank IPO Prospectus

Equitas Small Finance Bank IPO Rating

1634
3.9
Rating:Rated 3.9 stars

Vote Here ...

Company Contact Information

Equitas Small Finance Bank Ltd
4th Floor, Phase II, Spencer Plaza, No. 769,
Mount Road, Anna Salai, Chennai 600 002,
Tamil Nadu, India

Phone: +91 44 4299 5000
Email: secretarial@equitas.in
Website: https://www.equitasbank.com/

Equitas Small Finance Bank IPO Registrar

KFintech Private Limited
   Selenium Building, Tower-B, Plot No 31 & 32,
   Financial District,Nanakramguda, Serilingampally,
   Rangareddi, Telangana India - 500 032.

Phone: 1-800-3454001
Email: einward.ris@kfintech.com
Website: https://karisma.kfintech.com/

Equitas Small Finance Bank IPO Questions

  1. 1. How can I buy Equitas IPO through Zerodha?

    If you are a Zerodha customer, you could apply for Equitas Small Finance Bank IPO using Zerodha Console (back-office) website.

    Steps to apply in Equitas Small Finance Bank IPO through Zerodha

    1. Login to Zerodha Console website
    2. Click on the Portfolio tab and click IPO
    3. Select Equitas Small Finance Bank IPO
    4. Enter your UPI ID and verify the details
    5. Put Bid and Price in the box
    6. Tick on the checkbox
    7. Click on the Submit button

     

  2. 2. How many Equitas Holdings shares required to eligible for the Equitas Small Finance Bank shareholders category?

    Minimum 1 share of Equitas Holdings Limited (EHL) should be in your demat account on October 11, 2020, to be eligible for applying in shareholders category of Equitas Small Finance Bank IPO. October 11, 2020, is the cut-off date for eligibility. The IPO application should be in the name of the primary demat account holder.

     

  3. 3. Can I apply in the Employee and Retail Category in Equitas Small Finance Bank IPO?

    Eligible Employees can bid under all 3 categories of Equitas Small Finance Bank IPO:

    • Retail Category (any amount*)
    • Shareholder Category (< ₹2L)
    • Employee Category (<₹5L)

    An EHL shareholder and employee of EHL can apply in all three categories. A separate IPO application should be used for each of these categories.

    * Retail application is considered as RII or NII category based on the amount in the application. Amount < ₹2L is considered as RII and above ₹2L is NII.

     

  4. 4. Can I apply in retail and shareholder quota for Equitas Small Finance Bank IPO?

    A retail individual can also apply in the Shareholders category (upto ₹200,000) if he holds the Equitas Holdings Limited (EHL) shares in his demat account on October 11, 2020, the day of filing the RHP with SEBI.

    EHL shareholders can apply in both; RII or NII as well as shareholder category with the maximum limit of ₹200,000 in the shareholder's category.

    Please note an eligible EHL shareholder bidding in the EHL shareholder reservation portion may also bid under net offer i.e. either in Retail Individual Bidders Portion for up to ₹200,000 OR in Non-Institutional Bidders Portion such that the Bid Amount exceeds ₹200,000 but not exceeding the size of the Net Offer (excluding QIB portion), subject to applicable limits.

    An EHL Shareholders bidding in the EHL Shareholders Reservation Portion above ₹200,000 cannot Bid in the Net Offer as such Bids will be treated as multiple Bids.

     

Equitas Small Finance Bank IPO FAQs

  1. What is Equitas Small Finance Bank IPO?

    Equitas Small Finance Bank IPO is a main-board IPO of [.] equity shares of the face value of ₹10 aggregating up to ₹517.60 Crores. The issue is priced at ₹32 to ₹33 per equity share. The minimum order quantity is 450 Shares.

    The IPO opens on Oct 20, 2020, and closes on Oct 22, 2020.

    KFintech Private Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

  2. When Equitas Small Finance Bank IPO will open?

    The Equitas Small Finance Bank IPO opens on Oct 20, 2020 and closes on Oct 22, 2020.

  3. What is the lot size of Equitas Small Finance Bank IPO?

    Equitas Small Finance Bank IPO lot size is 450 Shares and the minimum order quantity is 450 Shares.

  4. How to apply for Equitas Small Finance Bank IPO?

    You can apply in Equitas Small Finance Bank IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

  5. When Equitas Small Finance Bank IPO allotment?

    The finalization of Basis of Allotment for Equitas Small Finance Bank IPO will be done on Oct 27, 2020, and the allotted shares will be credited to your demat account by Oct 29, 2020. Check the Equitas Small Finance Bank IPO allotment status.

  6. When is Equitas Small Finance Bank IPO listing date?

    The Equitas Small Finance Bank IPO listing date is not yet announced. The tentative date of Equitas Small Finance Bank IPO listing is Nov 2, 2020.

Equitas Small Finance Bank IPO Message Board

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