ESAF Small Finance Bank secures Rs 135 crore in funding from anchor investors

ESAF Small Finance Bank has successfully secured Rs 135 crore from anchor investors prior to its upcoming initial share sale, which is set to open for public subscription on Friday.

The bank has allocated 2,25,24,998 equity shares to 14 funds at a rate of Rs 60 per share, marking the upper end of the price band. This move has allowed the small finance bank to raise a total of Rs 135.15 crore from anchor investors.

Notable anchor investors include BNP Paribas Arbitrage, Copthall Mauritius Investment Ltd, Founders Collective Fund, ACM Global Fund VCC, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, ICICI Prudential Life Insurance Company, SBI General Insurance Company, and Ananta Capital Ventures Fund 1.

The bank's maiden public issue, featuring a price band of Rs 57-60 per share, is scheduled for subscription from November 3 to November 7.

This Initial Public Offering (IPO) amounts to Rs 463 crore and encompasses a fresh equity issue of Rs 391 crore, along with an Offer For Sale (OFS) of Rs 72 crore. The OFS includes shares sold by ESAF Financial Holdings Private Ltd (the promoter) and other shareholders such as PNB MetLife India Insurance Company Ltd and Bajaj Allianz Life Insurance Company Ltd.

The proceeds from the fresh issue will be used to bolster the bank's Tier-1 capital base.

ESAF Small Finance Bank is a prominent small finance bank in India, boasting substantial metrics in client base size, yield on advances, net interest margin, assets under management, Compound Annual Growth Rate (CAGR), total deposit CAGR, loan portfolio concentration in rural and semi-urban areas, and the ratio of micro loan advances to gross advances.

The bank has appointed ICICI Securities, DAM Capital Advisors Ltd, and Nuvama Wealth Management Ltd as the book-running lead managers to guide them through the IPO process.

The bank's equity shares will be listed on both the BSE and the NSE.

(With PTI Inputs)