About the Company:
Equitas Small Finance Bank Ltd is among the largest SFB 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.
Company offers wide range of banking products and services to customers with a focus on serving the financially unserved and underserved customer segments in India.
Company’s focus customer segments include individuals with limited access to formal financing channels on account of their informal, variable and cash-based income profile.
Company provides loans comprising LAPs, housing loans, and agriculture loans to micro-entrepreneurs, used and new commercial vehicle loans to drivers and micro-entrepreneurs typically engaged in logistics, MSE loans to proprietorships, and corporate loans.
On the liability side, company’s target customers comprise mass and mass-affluent individuals to whom we offer current accounts, salary accounts, savings accounts, and a variety of deposit accounts.
In addition, we also provide non-credit offerings comprising ATM-cum-debit cards, third party insurance, mutual fund products, and issuance of FASTags.
As of June 30, 2020, we had a base of 15,843 employees.
- As of March 31, 2019, we had the largest network of banking outlets among all SFBs in India.
- As of June 30, 2020, our distribution channels comprised 856 Banking Outlets and 322 ATMs across 17 states and union territories in India.
Company’s Asset Products:
- Small business loans.
- vehicle finance loans
- MSE finance;
- Loans to Corporates
- Other loans.
Operational Efficiency of Small Finance Banks:
Savings Accounts & Term Deposits with the Bank:
- As of June 30, 2020, we had 293,657 savings account holders.As of June 30, 2020, 559,745 customers had maintained term deposits with us.
Among the largest SFBs in India with a well-diversified asset Portfolio:
Equitas Small Finance Bank is among the largest SFB in India in terms of number of banking outlets, as of March 31, 2019, and in Fiscal 2019 we recorded the fourth lowest yields indicating our diversification away from microfinance.
Company has been able to successfully diversify our loan portfolio and significantly reduce our dependence on our microfinance business as compared to other microfinance companies that have converted to SFBs.
Strong retail liability portfolio with a strategic distribution network:
As of March 31, 2019, we were the second largest SFB in India in terms of total deposits. We also witnessed the second fastest growth in deposits from Fiscal 2018 to Fiscal 2019.
Company’s total deposit has grown at a CAGR of 38.75% from Rs.5603.9 crores as of March 31, 2018 to Rs.10788.4 crores as of March 31, 2020.
Marketshare of SFB’s: (based on Assets Under Management):
- Mr. Arun Ramanathan (Designation: Part time Chairman and Independent Director)
- Mr. Vasudevan Pathangi Narasimhan (Designation: MD and CEO)
Objectives of the Issue:
Fresh Issue: (Rs. 280 cr)
- Bank proposes to utilize the Net Proceeds from the Offer towards augmenting our Bank’s Tier I capital base to meet our Bank’s future capital requirements.
Offer for Sale: (Rs. 237.6 cr )
- The Promoter Selling Shareholder shall be entitled to the proceeds from the Offer for Sale. Our Bank will not receive any proceeds from the Offer for Sale.
Financials of the Company:
|(in Crores)||FY 17||FY 18||FY 19||FY 20||30th June 2020|
Valuation of Peer Group Companies:
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Equitas Small Finance Bank Ltd||10||2.39||13.80||8.92%||25.92|
|AU Small Finance Bank Ltd||10||12.90||62.03||12.07%||108.19|
|Bandhan Bank Ltd||10||16.34||31.52||17.42%||93.89|
|CreditAccess Grameen Ltd||10||23.14||34.69||13.90%||161.27|
|Spandana Sphoorty Financial Ltd||10||53.35||21.95||16.51%||316.84|
|Issue Opens on||20th October 2020|
|Issue Closes on:.||22nd October 2020|
|Issue Price||Rs.32 -33|
|Retail Category Allocation||35%|
|Minimum Lot||450 shares|
|Issue Size||Rs.517.6 cr ($70 million)|
|Market Cap||Rs.3756.2 cr (521 million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||8,48,48,485|
|Equity Shares Offered (OFS)||7,20,00,000|
|Total Equity Shares Offered (fresh+OFS)||15,68,48,485|
|Equity Shares Prior||105,34,01,602|
|Equity Shares after the issue||113,82,50,087|
Also Read: List of Upcoming IPOs in India
|Finalization of Basis of Allotment||On or before 27th October 2020|
|Initiation of Refunds||On or before 28th October 2020|
|Credit of Equity Shares:||On or before 29th October 2020|
|Listing Date:||On or before 2nd November 2020|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 05:00 PM)||Shares Offered||20th October||21st October||22nd October|
|Shareholder Reservation Portion||1,59,37,500||0.14||0.24||0.42|
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
KfinTech Website: http://kfintech/IPO/Allotment_Status
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|Equitas Small Finance Bank Limited
4th Floor, Phase II, Spencer Plaza
No. 769, Mount Road, Anna Salai
Chennai – 600 002
Tamil Nadu, India
Tel: +91 44 4299 5000
|IPO Registrar Info:|
|KFin Technologies Private Limited
Selenium, Tower B, Plot No. 31 & 32
Financial District, Nanakramguda
Hyderabad 500 032, Rangareddi
Tel: +91 40 6716 2222
Investor e-mail: email@example.com