ESAF Small Finance Bank IPO subscribed 1.74 times on debut

ESAF Small Finance Bank's Initial Public Offering (IPO) had a successful debut on November 3, witnessing strong investor interest. The IPO saw the subscription of 10.02 crore equity shares against an offer size of 5.77 crore equity shares, resulting in a subscription of 1.74 times. Investors across categories participated, with high net worth individuals (HNIs) buying 2.44 times the allotted quota and retail investors bidding 1.97 times their portion.

Qualified institutional buyers (QIBs) subscribed for 90 per cent of the shares in the reserved portion, while the section set aside for employees was subscribed 1.01 times. The IPO, excluding the employees' portion, is the net issue, and it is noteworthy that half of the net issue is reserved for QIBs, 15 per cent for HNIs, and the remaining 35 per cent for retail investors.

ESAF Small Finance Bank, headquartered in Kerala, aims to mobilise Rs 463 crore through the IPO. This includes a fresh issue of Rs 390.70 crore worth of shares and an offer-for-sale (OFS) of Rs 72.30 crore shares by promoters and investors. The bank has already secured Rs 135.15 crore from anchor investors, including Ananta Capital Ventures Fund, ACM Global Fund VCC, BNP Paribas Arbitrage, Founders Collective Fund, Astorne Capital VCC, Copthall Mauritius Investment, Kotak Mahindra Life Insurance Company, and ICICI Prudential Life Insurance.

The IPO's proceeds will be utilised to augment the bank's Tier-I capital base for future capital requirements and to enhance its business, primarily in onward lending. In the grey market, shares were trading at around a 35 per cent premium over the upper price band, indicating a healthy response.

On the first day of subscription, the retail investors' portion was subscribed 1.98 times, the NII portion 2.44 times, and the QIB portion 90 per cent, with the employee portion subscribed 1.01 times. The total bids received for the IPO amounted to 10,04,85,750 shares against 5,77,28,408 shares on offer.

ESAF Small Finance Bank IPO has a price band of Rs 57 to Rs 60 per equity share, with a lot size of 250 equity shares and multiples thereof. The IPO is open for subscription until Tuesday, November 7, and the tentative listing date is Thursday, November 16. The estimated listing price, considering the upper end of the price band and the current grey market premium, is indicated at Rs 82 per share, reflecting a 36.67 per cent increase over the IPO price of Rs 60.

ESAF Small Finance Bank IPO last Grey Market Premium (GMP) is Rs 18, last updated Nov 3, 2023, 06:53 PM, according to Investor Gain. With an upper price band of 60, ESAF Small Finance Bank IPO's estimated listing price is Rs 78, as per the latest GMP.The expected percentage gain/loss per share is 30 per cent.