ESAF Small Finance Bank Collects Rs 135 Crore From Anchor Investors Ahead of IPO

New Delhi: ESAF Small Finance Bank has collected Rs 135 crore from anchor investors ahead of its initial share sale that opens for public subscription on Friday. The lender has allotted 2,25,24,998 equity shares to 14 funds at Rs 60 per share, which is also the upper end of the price band, according to a circular uploaded on the BSE website.

Allotment to Anchor Investors

At this price, the small finance bank has garnered Rs 135.15 crore from anchor investors. BNP Paribas Arbitrage, Copthall Mauritius Investment Ltd, Founders Collective Fund, ACM Global Fund VCC, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, ICICI Prudential Life Insurance Company, SBI General Insurance Company, Ananta Capital Ventures Fund 1 are among the anchor investors.

Public Issue Details

The maiden public issue, with a price band of Rs 57-60 per share, will open for subscription on November 3 and conclude on November 7. The Rs 463-crore Initial Public Offering (IPO) comprises a fresh equity issue of Rs 391 crore and an Offer For Sale (OFS) of Rs 72 crore.

Purpose of the IPO

Those selling shares in the OFS are promoter-- ESAF Financial Holdings Private Ltd and other shareholders-- PNB MetLife India Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd. Proceeds of the fresh issue will be utilised to augment the banks Tier-1 capital base.

About ESAF Small Finance Bank

ESAF Small Finance Bank is one of the leading small finance banks in India in terms of client base size, yield on advances, net interest margin, assets under management, Compound Annual Growth Rate (CAGR), total deposit CAGR, loan portfolio concentration in rural and semi-urban areas and ratio of micro loan advances to gross advances.

Role of Book-Running Lead Managers

ICICI Securities, DAM Capital Advisors Ltd and Nuvama Wealth Management Ltd are the book-running lead managers to advise the bank on the IPO. The equity shares of the bank will be listed on the BSE and the NSE.

The successful collection of funds from anchor investors ahead of its IPO reflects the strong investor interest in ESAF Small Finance Bank. The bank's strong performance and growth potential make it an attractive investment opportunity for investors.