While the Indian stock market underwent considerable volatility due to the impact of the COVID-19 pandemic, the recovery phase has opened up new avenues for investment. There are a variety of upcoming IPO opportunities available for the informed investor. One such opportunity that various investors are keeping a keen eye on is the new IPO listing for Equitas Small Finance Bank Ltd.
About Equitas Small Finance Bank Ltd
Founded in the year 2007 by the Equitas group of companies, Equitas Small Finance Bank Ltd is a small finance bank based in Chennai, India. In the year 2019, Equitas was recognized as one of the five best governed companies to IPO between the years 2015 and 2017. It was awarded the Corporate Governance Award for this achievement.
Latest IPO offering:
Equitas Small Finance Bank Ltd IPO date
The upcoming Equitas Small Finance Bank Ltd IPO is set to open for public subscription on 20 October, 2020. It will remain open for a duration of two days, with the closing being set for October 22, 2020. An important point to note here is that for anchor investors, the offer period for the Equitas Small Finance Bank Ltd IPO is a day before its opening date. Hence, the IPO opens for anchor investors on 19 October, 2020.
Issue size of the IPO
At present, the company is looking to raise about Rs 518 crore with the upcoming Equitas Small Finance Bank Ltd IPO. The latest issue of the Equitas Small Finance Bank Ltd IPO aggregates up to about Rs 280 crore and an offer of sale up to 72,000,000 equity shares by Equitas Holdings Limited, its parent company.
Price Band of the IPO
The Equitas Small Finance Bank Ltd share price band is set at Rs. 32 to Rs. 33 per equity share.
Lot size and minimum order quantity of the IPO
The lot size of the Equitas Small Finance Bank Ltd IPO is set at 450 equity shares, with a minimum order quantity of 1 lot size. After the first lot, the bids can be made in multiples of 450, with a maximum order quantity of 13 lots.
With the cut-off price for the Equitas Small Finance Bank Ltd IPO clocking in at Rs. 32-33 per equity share, an investor would be shelling out about Rs 14,850 for a single lot.
Allocation of the IPO
About 50% of the offer for the Equitas Small Finance Bank Ltd IPO is open to Qualified Institutional Buyers, while 35% of the offer is reserved for retail investors. Meanwhile, an additional 15% is reserved for Non-institutional Investors.
Equitas Small Finance Bank Ltd is also reserving about 10% of its offer, or Rs 51 crore, for its shareholders. All investors holding shares under Equitas Holding Ltd as of October 11, 2020, are eligible to apply under the shareholder's category for the Equitas Small Finance Bank Ltd IPO. Under this category, the shareholders can apply for a bid of up to Rs 2 lakh. In addition, a reservation of up to Rs 1 crore is open for eligible Equitas Holdings employees with a maximum bid of Rs 2 lakh.
Listings of the IPO
The Equitas Small Finance Bank Ltd IPO has received in-principle approvals from both the Bombay Stock Exchange (BSE) as well as the National Stock Exchange (NSE). Therefore, the shares of Equitas Small Finance Bank Ltd are set to be listed on both the stock exchanges.
Objective of the IPO
According to the Equitas Small Finance Bank Ltd IPO, the net proceeds received by the company are to be utilised for a single objective: to augment the bank’s tier-I capital base to meet their future capital requirements such as organics growth and expansion.
While these Equitas Small Finance Bank Ltd IPO details can certainly help you make the best investment decision going forward, the first step towards prudent investment is to align yourself with the right platform.
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