ESAF SFB files papers with Sebi for IPO

economictimes.indiatimes.com:

IPO). The bank has scaled down its IPO size by about a third from what was planned before Covid. This is the third time it is seeking Sebi's approval for an IPO.

Initially, it had received Sebi approval in March 2020 — just before the pandemic struck — to raise Rs 976 crore including Rs 800 crore via primary issuance. It filed the IPO papers for the second time in July 2021 with similar size in mind and got the approval in October the same year. Both the time, the approval lapsed for not exercising it within a year.

The present IPO will include a fresh issue up to Rs 487 crore and an offer for sale of up to Rs 142 crore. The bank promoter — ESAF Financial Holdings may sell equity shares worth Rs 119.26. Among other investors, PNB MetLife India Insurance Company is looking to sell shares valuing up to Rs 12.67 crore and Bajaj Allianz Life Insurance up to Rs 10.37 crore.

ESAF Financial Holdings owns a 62.46% stake in the bank, while PNB MetLife and Bajaj Allianz Life hold 4.75% and 3.89% respectively. ESAF, in consultation with the lead bankers to the issue, may consider a further issue of equity shares aggregating up to Rs 97.33 crore in a pre-IPO round. In such an event, the primary issue size of the IPO will be reduced.