Equitas Small Finance Bank IPO Subscribed 49% So Far On Day 2

Equitas Small Finance Bank continued to witness a lukewarm response to its initial public offering on day two of the bidding.

The issue was subscribed 49% as of 12:00 p.m. on Oct. 21., led by retail investors. That was followed by employees and shareholders' bid for the portion reserved for them. But institutional investors and high net-worth individuals have hardly shown any interest in the share sale.

Here are the subscription details:

• Institutional investors: 0%
• High net-worth individuals: 3%
• Retail investors: 107%
• Employees: 67%
• Shareholders: 18%

The Equitas Small Finance Bank IPO—set to end on Oct. 22—comprises a fresh issue of up to 8.75 crore shares worth Rs 280 crore, and an offer-for-sale of 7.2 crore shares by parent Equitas Holdings Ltd. The price band has been fixed at Rs 32-33 apiece.

According to a statement, India’s second-largest microfinance bank by deposits has raised Rs 139.68 crore by allocating over 4.2 crore shares to 35 anchor investors at the upper end of the price band.

At least three brokerages recommended investors subscribe to the Equitas Small Finance Bank IPO, citing a well-diversified portfolio, stable asset quality and an under-served market. They highlighted some concerns as well.

Research reports on Equitas Small Finance Bank IPO: