ESAF Small Finance Bank refiles draft papers with Sebi for Rs 629 cr IPO
IPO). The bank had earlier filed its DRHP in July 2021. The IPO will include a fresh issue up to Rs 486.74 crore and an offer for sale (OFS) of up to Rs 142.30 crore by promoter and other selling shareholders.
Under the OFS segment, about Rs 119 crore worth shares will be offloaded by ESAF Financial Holdings, Rs 12.67 crore by PNB MetLife India Insurance Company, up to Rs 10.37 crore by Bajaj Allianz Life Insurance. The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares by a private placement or any other method up to Rs 97.33 crore. If such placement is completed, the fresh issue size will be reduced.
As per the DRHP, the proceeds from the fresh issue will be used towards augmenting the Bank’s Tier– I capital base to meet its future capital requirements. As a small finance bank, EASF requires at least 75.00% of its adjusted net bank credit is allocated to priority sectors. Their business model revolves around responsible banking principles, offering customer-centric products and services through innovative technology applications.
Its asset products include micro loans, retail loans, MSME loans, loans to financial institutions, and agricultural loans. As of March 2023, 62.84% of the lender's gross advances were directed towards customers in rural and semi-urban areas, and 71.71% of their banking outlets were located in these regions. Between FY21-23, the Bank's assets under management (AUM) grew to Rs 16,331, with a CAGR of 39.22%, the highest among their peers according to the CRISIL report.
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