Shares of Equitas Small Finance Bank were trading at Rs 30.60 at 10:08 IST on the BSE, a discount of 7.27% over the initial public offer (IPO) price of Rs 33.
The stock was listed at Rs 31, a discount of 6.06% to IPO price. So far the stock hit a high of Rs 31.45 and low of Rs 30.10. On the BSE, 8.26 lakh shares were traded on the counter so far.The IPO of Equitas Small Finance Bank was subscribed 1.95 times. The issue opened for bidding on 20 October 2020 and closed on 22 October 2020. The price band for the IPO was set at Rs 32-33 per share.
The qualified institutional buyers (QIBs) category was subscribed 3.91 times. The retail individual investors (RIIs) category was subscribed 2.08 times. The non-institutional investors category was subscribed 0.22 times.
The IPO consisted of fresh issue of shares amounting to Rs 280 crore and an offer of sale comprised of 7.20 crore shares by the bank's promoter, Equitas Holdings (including anchor portion of 4.23 crore equity shares).
The bank proposes to utilize the net proceeds from the offer towards augmenting bank's Tier I capital base to meet bank's future capital requirements such as organic growth and expansion and to comply with the regulatory requirements for enhanced capital base, as may be prescribed in the future.
The listing of the bank is also in line with terms of the RBI in-principle approval, RBI final approval and SFB licensing guidelines, requiring the bank to list its equity shares on the stock exchanges within three years from the date of commencement of business by the bank.
The small finance bank recorded net profit of Rs 57.67 crore and total income of Rs 750.96 crore in the quarter ended on 30 June 2020.
Equitas Small Finance Bank is the largest small finance bank in India in terms of number of banking outlets and the second largest SFB in India in terms of assets under management and total deposits in FY2019. The bank offers a range of banking products and services to customers with a focus on serving the financially unserved and underserved customer segments in India.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU