Equitas Small Finance Bank IPO is going to open for subscription on October 20. Subscriptions for this IPO will close on October 22. The price band for this 520 crore IPO is fixed at Rs 32 to 33 per equity share. The IPO will issue 85 million fresh shares and 72 million shares in the offer for sale. After the IPO, the equity of Equitas Holdings Ltd, the holding company of Equitas Small Finance Bank, will be 82 per cent in the bank. Let us know some things related to this IPO.
1. Lot size 450 equity shares in this IPO. That is, a minimum of 450 equity shares can be bid. Thereafter bids can be made in multiples of 450 equity shares.
2. Equitas Small Finance Bank shares may be listed on the stock exchanges on November 2.
3. KFin Technologies Private Limited is the registrar company for the issue and will manage the allocation and refund of shares.
4. Allotment of shares in Equitas Small Finance Bank IPO is likely to be completed on October 27.
5. There is no discount for shareholders of Equitas Holdings in this issue.
6. Although a portion (about 10 percent) of this issue is reserved for this class, you must have held at least one share of Equitas Holding on RHP filing date (October 11) to qualify for this class. needed.
7. As per RBI rules, the promoter of a small finance bank has to reduce its stake in the bank to 40 per cent after five years of operation. Equitas Small Finance Bank is scheduled to complete five years of operations in September 2021.
8. Management has indicated that two routes are under consideration for the reduction of Equitas Holdings’ stake in the bank. It has also been said that Equitas Small Finance Bank can apply for a universal banking license when the appropriate time comes.
9. Currently, the bank is well capitalized with a capital adequacy ratio of 21 per cent and will improve further after this issue.
10 . 280 crore worth of new shares will be issued under this IPO. In addition, 7.2 crore equity shares of the bank’s holding company Equitas Holdings Limited will be allotted through Offer for Sale.