ESAF SFB files for IPO a third time, scales down size

Kolkata: ESAF Small Finance Bank, a Kerala-based lender with a focus on unbanked and under-banked customer segments, has filed papers with the capital market regulator Securities & Exchange Board of India (Sebi) to raise ₹629 crore through an initial public offering.

The bank has scaled down its IPO size by about a third from what was planned before the Covid-19 pandemic. 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 ₹976 crore including ₹800 crore through a primary issuance. It filed the IPO papers for the second time in July 2021 with a similar size in mind and got the approval in October of the same year.

Both times, the approval lapsed for not exercising it within a year.

The present IPO will include a fresh issue of up to ₹487 crore and an offer for sale of up to ₹142 crore.

The bank's promoter - ESAF Financial Holdings may sell equity shares worth ₹119.26. Among other investors, PNB MetLife India Insurance Company is looking to sell shares valued at up to ₹12.67 crore and Bajaj Allianz Life Insurance up to ₹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.