ESAF Small Finance Bank refiles DRHP; cuts issue size to ₹629 crore

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₹629 crore through an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the company has reduced the issue size to ₹629 crore from ₹998 crore earlier.  The ESAF Small Finance Bank IPO will now comprise fresh issue equity shares aggregating to ₹486.74 crore and an offer for sale (OFS) of ₹142.3 crore.  Meanwhile, 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. ESAF Financial Holdings owns a 62.46% stake in the small finance bank, while PNB MetLife and Bajaj Allianz Life own 4.75% and 3.89% stake in the lender, respectively.

Also Read: Senco Gold IPO allotment date today. Latest GMP, how to check status online In 2021, the lender had filed for a ₹998 crore IPO which was to include ₹800 crore of primary issuance and also an OFS of ₹198 crore from existing investors. However, it lapsed as it was to be done within a year.

The bank proposes to utilise the proceeds of the fresh issue to augment its Tier 1 capital base. In November 2022, the bank's managing director and chief executive K Paul Thomas said that the bank was looking to refile its IPO with a lower issue size, which would hit the market in FY24. The bank has appointed ICICI Securities, DAM Capital Advisors Ltd and Nuvama Wealth Management Ltd as merchant bankers for the IPO.