Incorporated in 1993, Chennai based Equitas Small Finance Bank Ltd (ESFBL) in Fiscal 2019 was the largest small finance bank in India 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:
| 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 Date | Oct 20, 2020 – Oct 22, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | |
| Fresh Issue | [.] Eq Shares of ₹10 (aggregating up to ₹280.00 Cr) |
| Offer for Sale | 72,000,000 Eq Shares of ₹10 (aggregating up to ₹[.] Cr) |
| Face Value | ₹10 per equity share |
| IPO Price | [.] to [.] per equity share |
| Market Lot | |
| Min Order Quantity | |
| Listing At | BSE, NSE |
Equitas Small Finance Bank IPO Tentative Date / Timetable
| Bid/Offer Opens On | Oct 20, 2020 |
| Bid/Offer Closes On | Oct 22, 2020 |
| Finalization of Basis of Allotment | Oct 27, 2020 |
| Initiation of Refunds | Oct 28, 2020 |
| Credit of Shares to Demat Acct | Oct 29, 2020 |
| IPO Shares Listing Date | Nov 2, 2020 |
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.
Note:
- Investors Portion: QIB = Not More than 50% of the offer, NII = Not less than 15% of the offer and Retail = Not less than 35% of the offer
- Employee Reservation Portion:₹1 Cr
- Shareholders Reservation Portion: ₹51 Cr