ESAF Small Finance Bank Files Rs 976-Crore IPO Papers With SEBI
Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

ESAF Small Finance Bank Files Rs 976-Crore IPO Papers With SEBI


ESAF Small Finance Bank on Monday filed draft papers with the Securities and Exchange Board of India to float a Rs 976-crore initial public offering.

The IPO comprises a fresh issue of shares worth Rs 800 crore and an offer-for-sale aggregating up to Rs 176.2 crore, according to the draft prospectus filed with the markets regulator.

The bank, in consultation with its book running lead managers may consider a pre-IPO placement of up to Rs 300 crore. If it is undertaken, the amount raised will be reduced from the fresh issue, the draft papers noted.

The proceeds from the fresh issue will be used to augment the bank's tier-1 capital (primarily loans or advances and investment portfolio) to meet future capital requirements.

The public issue is being managed by Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities.

The Kerala-based bank currently operates in 16 states and one union territory through its 403 branches and 38 ultra-small branches, serving over 3.73 million customers.

The bank's net profit increased from Rs 24.06 crore in September 2018 to Rs 92.44 crore in September 2019 and the interest earned increased from Rs 472.25 crore in September 2018 to Rs 660.68 crore in September 2019.

The bank will continue to focus on its rural and semi urban franchisees and increase deposits across non-resident Indians, among others, according to the draft papers.

In 2017, AU Small Finance Bank launched its over Rs 1,900 crore initial share-sale.

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