Shares in Equitas Holdings surged in opening trade and was last trading at Rs 146, against an issue price of Rs 110.
The fair bit of appetite was seen on expected good growth at the company. The company is among the few banks that has also got a license from the RBI in September 2015 to set up a small finance bank.
The offer comprised fresh issue of shares aggregating Rs 720 crore and an offer for sale of up to 1,32,425,884 shares by existing shareholders, including P N Vasudevan, MD.
IIFL Institutional Equities in a note to its clients, said, "The company is the most diversified entity with operations in microfinance (MFI), vehicle finance (VF), micro/small enterprises (MSE) and housing finance (HF). It is among the better organised MFIs. With a strong management team, ability to deliver robust AUM growth and strong back-end technology infrastructure, it should be able to manage the transition challenges better."