Equitas Small Finance Bank Files For IPO Worth Rs 1,000 Crore

On Monday, Equitas Small Finance Bank (Equitas SFB) said it has filed draft red herring prospectus (DRHP) with the regulator SEBI (Securities and Exchange Board of India) for Rs 1,000 crore initial public offer (IPO).

The IPO will include a fresh issue aggregating up to Rs 550 crore and an offer for sale (OFS) of up to 8,00,00,000 equity shares by Equitas Holdings Limited (EHL), the promoter, Equitas Small Finance Bank said in a statement quoting DRHP.

The offer includes a reservation of up to Rs 100 crore for subscription by eligible EHL shareholders and a reservation aggregating up to Rs 5 crore for subscription by eligible employees, it said.

"In terms of the RBI In-Principle Approval, RBI Final Approval, and SFB Licensing Guidelines, the Bank is required to list its equity shares on the Stock Exchanges within three years from the date of commencement of business by the bank," it said.

The bank proposes to utilize the net proceeds from the offer towards augmenting Tier I capital base and to meet future capital requirements.

The equity shares will be listed on BSE and NSE.

In September after the small bank failed to be listed within the stipulated timeframe as per the licence agreement, the banking regulator, Reserve Bank of India (RBI), refused to extend the listing deadline for Equitas SFB and barred it from opening new branches till further orders and also froze the pay of CEO Vasudevan PN.

As per RBI rules, a small finance bank should list within three years of reaching Rs 500-crore net worth.

Shares of Equitas Holdings Ltd opened at an intraday high of Rs 107.40 on NSE but lost steam in the late morning session.