Equitas Small Finance Bank IPO Subscribed 49% So Far On Day 2

Equitas Small Finance Bank IPO Subscribed 49% So Far On Day 2

Equitas Small Finance Bank continued to witness a lukewarm response to its initial public offering on day two of the bidding.

The issue was subscribed 49% as of 12:00 p.m. on Oct. 21., led by retail investors. That was followed by employees and shareholders' bid for the portion reserved for them. But institutional investors and high net-worth individuals have hardly shown any interest in the share sale.

Here are the subscription details:

  • Institutional investors: 0%
  • High net-worth individuals: 3%
  • Retail investors: 107%
  • Employees: 67%
  • Shareholders: 18%

The Equitas Small Finance Bank IPO—set to end on Oct. 22—comprises a fresh issue of up to 8.75 crore shares worth Rs 280 crore, and an offer-for-sale of 7.2 crore shares by parent Equitas Holdings Ltd. The price band has been fixed at Rs 32-33 apiece.

According to a statement, India’s second-largest microfinance bank by deposits has raised Rs 139.68 crore by allocating over 4.2 crore shares to 35 anchor investors at the upper end of the price band.

Also read: IPO-Bound Equitas Small Finance Bank Has Enough Capital For Next 3 Years, Says CEO

At least three brokerages recommended investors subscribe to the Equitas Small Finance Bank IPO, citing a well-diversified portfolio, stable asset quality and an under-served market. They highlighted some concerns as well.

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