IPO Alert: Equitas Small Finance Bank shares close nearly 1% lower in debut trade
IPO Alert: Equitas Small Finance Bank shares close nearly 1% lower in debut trade

Shares of Equitas Small Finance Bank on Monday debuted with a 6 per cent discount against its issue price of Rs 33 and finally closed nearly 1 per cent lower.

The stock listed at Rs 31, a decline of 6 per cent against the issue price on the BSE. During the day, it touched a high of Rs 33.05 and a low of Rs 30.10. It finally closed the day at Rs 32.75, 0.75 per cent lower.

On the NSE, it debuted at Rs 31.10, falling 5.75 per cent from the issue price. The stock closed at Rs 32.80, a drop of 0.60 per cent.

The Rs 517-crore initial public offer of Equitas Small Finance Bank was subscribed 1.95 times last month.

Price range for the company's IPO was fixed at Rs 32-33 per share.

The company's market valuation was at Rs 3,727.77 crore on the BSE during the close of trade.

In traded volume terms, 37.21 lakh shares were traded on the BSE and over 2 crore shares on the NSE during the day.

The IPO consisted of a fresh issue aggregating up to Rs 280 crore and an offer-for-sale of up to 7.2 crore equity shares by Equitas Holdings Limited, the holding company of the bank.

"It has been a very good journey for the bank over the last four years. We believe that we have created a platform which can really lead to a very strong, sustainable and steady growth as a bank. Our asset quality remains very strong. Even during the COVID and post-COVID period, our collection efficiencies have remained quite strong," the bank's managing director and CEO P N Vasudevan said during the listing ceremony in Mumbai.

In a filing to the BSE on Sunday, Equitas Holdings had said post the moratorium, which ended on August 31, 2020, Equitas SFB witnessed healthy collections as lockdown restrictions eased across the country.

"Customers representing 94 per cent of the bank's advances have paid their EMIs either during September 2020 or October 2020 or both the months," according to the filing.

That leaves only customers representing the remaining around 6 per cent of the bank's advances (excluding loans under NPA) who have not paid both the September and October 2020 EMIs, out of which approximately 5 per cent loans are secured and only 1 per cent is unsecured, it said.

The offer opened for subscription on October 20 and closed on October 22, 2020.

The book running lead managers to the offer were JM Financial, Edelweiss Financial Services and IIFL Securities.

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Free Press Journal