ESAF Small Finance Bank Ltd, is a Small Finance Bank with a focus on unbanked and under-banked customer segments, especially in rural and semi-urban areas has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The company had refiled preliminary IPO papers with Sebi in July 2023.
The IPO includes a fresh issue up to Rs 486.74 crore and an offer for sale of up to Rs 142.30 crore by Promoter and other selling shareholders.
The offer for sale comprises of up to Rs 119.26 crore by ESAF Financial Holdings Private Limited, up to Rs 12.67 crore by PNB MetLife India Insurance Company Limited, up to Rs 10.37 crore by Bajaj Allianz Life Insurance Company Limited.
The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares by a private placement or any other method aggregating up to Rs 97.33 crore (“Pre-IPO Placement”). If such placement is completed, the fresh issue size will be reduced.
As per the DRHP, the proceeds from the Fresh Issue will be used towards augmenting the Bank’s Tier – I capital base to meet its future capital requirements.
In 2006, Kadambelil Paul Thomas and others acquired the Corporate Promoter of EASF Small Finance Bank. Later, in 2008, the micro loan business of ESAF Foundation was transferred to the Corporate Promoter through a business transfer agreement. The Corporate Promoter obtained NBFC-MFI status in 2014. The Promoters have a longstanding history of more than 27 years, primarily catering to the needs of the unserved and underserved, with a focus on promoting financial inclusion.
The bank has an extensive network of 700 banking outlets (including 59 business correspondent-operated banking outlets), 743 customer service centers (operated by their business correspondents), 20 business correspondents, 2,023 banking agents, 481 business facilitators, and 528 ATMs spread across 21 states and two union territories, serving a customer base of 6.83 million as of March 31, 2023.
ICICI Securities Limited, DAM Capital Advisors Limited and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
