ESAF Small Finance Bank IPO

ESAF Small Finance Bank IPO will open for subscription from 03 November 2023. The company aims for an issue size of ₹463 Cr through this IPO.

Company Overview

Full nameESAF Small Finance Bank Limited
Company Website

About Company

ESAF Bank’s focus is on providing loans to customers in rural and semi-urban areas. As of 31 March 2023, its gross advances to the customers in rural and semi-urban areas (combined) accounted for 62.84% of gross advances, and 71.71% of the banking outlets were located in rural and semi-urban areas (combined). ESAF Small Finance Bank asset products comprise (a) Micro Loans, which comprise Microfinance Loans and Other Micro Loans; (b) retail loans, which include gold loans, mortgages, personal loans, and vehicle loans; (c) MSME loans; (d) loans to financial institutions; and (e) agricultural loans.

ESAF Bank liability products comprise current accounts, savings accounts, term deposits, and recurring deposits. As of 31 March 2023, it had 6.48 million deposit accounts. ESAF Bank has an extensive network of 700 banking outlets (including 59 business correspondent-operated banking outlets), 743 customer service, 20 business correspondents, 2,023 banking agents, 481 business facilitators, and 528 ATMs spread across 21 states and two union territories, serving 6.83 million customers as at 31 March 2023. The AUM grew from INR 8,425.93 crore to INR 16,331.27 crore as of 31 March 2021 and 2023, respectively, registering a CAGR of 39.22%, which was the highest CAGR among its peers.

The Objectives of the Issue

  • The Net Proceeds are proposed to be utilized towards augmentation of the Bank’s Tier-I capital base to meet the Bank’s future capital requirements which are expected to arise out of growth in the Bank’s assets, primarily the Bank’s loans/advances and investment portfolio and to ensure compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time.
  • The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.

ESAF Small Finance Bank IPO Timetable

IPO Opening date03 November 2023
IPO Closing07 November 2023
Basis of Allotment10 November 2023
Initiation Refund13 November 2023
Credit to Demat Account15 November 2023
Listing Date16 November 2023
(Cut-off time for UPI mandate confirmation – 5 PM on November 7, 2023)

ESAF Small Finance Bank IPO details

Issue typeBook Built Issue IPO
IPO issue size₹463 Cr – 77,166,667 shares
Fresh Issue₹390.70 Cr – 65,116,667 shares
Offer for sale₹72.30 Cr – 12,050,000 shares
Face value₹10 per share
Price Band ₹57 to ₹60 per share
Lot size250 Shares
Employee Discount₹05 per share
Shareholding pre-issue449,473,798
Shareholding post-issue514,590,465
Listing ExchangeBSE & NSE

ESAF Small Finance Bank IPO Lot Size

Retail (Min)1250₹15,000
Retail (Max)133250₹195,000
S-HNI (Min)143,500₹210,000
S-HNI (Max)6616,500₹990,000
B-HNI (Min)6716,750₹1,005,000

ESAF Small Finance Bank IPO Reservation Details

QIB Shares Offered50%
NII (HNI) Shares Offered15%
Retail Shares Offered35%

ESAF Small Finance Bank Financial Performance

 FY 2021FY 2022FY 2023
Net income105.4054.73302.33
Margin (%)6.422.8210.59
(Amount in ₹ Crores)

ESAF Small Finance Bank Valuations & Margins

FY 2021FY 2022FY 2023
PE ratio8.49 – 8.94
RONW (%)7.803.8917.69
ROE (%)8.854.1219.36
EBITDA (%)17.3611.3721.99

Company Promoters

  • Kadambelil Paul Thomas
  • ESAF Financial Holdings Private Limited.

Promoter Holding

Pre Issue Share Holding74.43%
Post Issue Share Holding62.64%

ESAF Small Finance Bank IPO Lead Manager(s)

  • ICICI Securities Limited
  • Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd)
  • Nuvama Wealth Management Limited

ESAF Small Finance Bank Registrar

C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 022 4918 6060

ESAF Small Finance Bank Contact Details

Building No. VII/83/8, ESAF Bhavan,
Thrissur-Palakkad National Highway,
Mannuthy, Thrissur 680 651, Kerala
Phone: +91 487 7123 907

ESAF Small Finance Bank IPO Allotment Status

ESAF Bank IPO allotment status will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.

Final thoughts

ESAF Small Finance Bank IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.

Happy Investing

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