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This article is more than 1 year old.

ESAF Small Finance Bank to take call on Rs 976-crore IPO after September

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The proposed IPO comprises a fresh issue worth Rs 800 crore and an offer for sale (OFS) aggregating up to Rs 176.2 crore.

ESAF Small Finance Bank to take call on Rs 976-crore IPO after September
Kerala-based ESAF Small Finance Bank has said it will take a call on Rs 976-crore initial public offering (IPO) after September.
As part of its commitment for going public by listing its stock in line with requisite guidelines, the bank had filed draft red herring prospectus (DRHP) in January and subsequently got approval from the market regulator Sebi in the last week of March.
However, the bank could not go to market due to lockdown imposed in the wake of COVID-19 outbreak.
"We have Sebi approval but we have not yet decided about the right time. After September, we will take a call about the IPO in consultation with merchant bankers," its managing director K Paul Thomas told PTI.
The proposed IPO comprises a fresh issue worth Rs 800 crore and an offer for sale (OFS) aggregating up to Rs 176.2 crore.
Currently, promoters and promoter group together hold 77.94 per cent stake in the bank, which commenced its operation in March 2017. Besides, SIDBI Trustee Company Ltd-A/C Samridhi Fund holds 12.24 per cent stake in the bank.
It is to be noted that small finance banks with a net worth of more than Rs 500 crore were mandated by the Reserve Bank of India (RBI) to list within three years of launching operations.
With regard to banking operations, Thomas said the business has started gathering momentum from July.
At the same time, he said, the number of loan customers availing moratorium has also come down to 70 per cent from nearly 100 per cent during initial two months of lockdown.
He also said the bank is working with the government of India for distributing Prime Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi), a scheme for street vendors.
It aims to provide affordable working capital loans to street vendors to resume their livelihoods that have been affected due to the coronavirus lockdown.
Under the scheme, street vendors of urban areas get collateral-free loan of up to Rs 10,000 for a period of one year.
With a view to enhance convenience for customers, Thomas said the bank has introduced a number of initiatives including video KYC, digital collection and interaction with customers via video conference.
All its bank branches and ATMs in 17 states and union territories are functioning and providing help to customers and the public at large, he added.