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 name | ESAF Small Finance Bank Limited |
| Sector | Banking |
| Industry | Bank-Private |
| Company Website | https://www.esafbank.com/ |
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 date | 03 November 2023 |
| IPO Closing | 07 November 2023 |
| Basis of Allotment | 10 November 2023 |
| Initiation Refund | 13 November 2023 |
| Credit to Demat Account | 15 November 2023 |
| Listing Date | 16 November 2023 |
ESAF Small Finance Bank IPO details
| Issue type | Book 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 size | 250 Shares |
| Employee Discount | ₹05 per share |
| Shareholding pre-issue | 449,473,798 |
| Shareholding post-issue | 514,590,465 |
| Listing Exchange | BSE & NSE |
ESAF Small Finance Bank IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 250 | ₹15,000 |
| Retail (Max) | 13 | 3250 | ₹195,000 |
| S-HNI (Min) | 14 | 3,500 | ₹210,000 |
| S-HNI (Max) | 66 | 16,500 | ₹990,000 |
| B-HNI (Min) | 67 | 16,750 | ₹1,005,000 |
ESAF Small Finance Bank IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
ESAF Small Finance Bank Financial Performance
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 1,641.17 | 1,939.93 | 2,853.66 |
| Expenses | 1,663.03 | 2,092.78 | 2,839.24 |
| Net income | 105.40 | 54.73 | 302.33 |
| Margin (%) | 6.42 | 2.82 | 10.59 |
ESAF Small Finance Bank Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 2.46 | 1.22 | 6.71 |
| PE ratio | – | – | 8.49 – 8.94 |
| RONW (%) | 7.80 | 3.89 | 17.69 |
| NAV | 30.08 | 31.30 | 38.03 |
| ROE (%) | 8.85 | 4.12 | 19.36 |
| EBITDA (%) | 17.36 | 11.37 | 21.99 |
| Debt/Equity | – | – | – |
Company Promoters
- Kadambelil Paul Thomas
- ESAF Financial Holdings Private Limited.
Promoter Holding
| Pre Issue Share Holding | 74.43% |
| Post Issue Share Holding | 62.64% |
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
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 022 4918 6060
Email: esaf.ipo@linkintime.co.in
Website: www.linkintime.co.in
ESAF Small Finance Bank Contact Details
ESAF SMALL FINANCE BANK LIMITED
Building No. VII/83/8, ESAF Bhavan,
Thrissur-Palakkad National Highway,
Mannuthy, Thrissur 680 651, Kerala
Phone: +91 487 7123 907
Email: investor.relations@esafbank.com
Website: www.esafbank.com
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
