ESAF Small Finance Bank primarily serves unbanked and under-banked customer segments, especially in rural and semi-urban areas. They have shown robust asset growth, and their business model focuses on responsible banking principles and innovative technology applications.
The IPO is worth Rs 463 crore, comprising a fresh equity issue of Rs 391 crore and an offer for sale (OFS) of Rs 72 crore.
The IPO is priced in the range of Rs 57-60 per share. Investors can bid for a minimum of 250 shares and in multiples thereafter.
About 50% of the issue is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 35% for retail investors.
The proceeds from the fresh issue will be used to augment the bank's Tier–I capital to meet its future capital requirements
The company's IPO is seeking a price-to-earnings (PE) multiple of 8.94x on the upper end of the price band over the diluted earnings per share (EPS) of FY23
The initial public offering (IPO) of ESAF Small Finance Bank is open for subscription and will close on November 7, 2023.
Analysts are advising investors to subscribe to the IPO based on the company's strong return ratios in recent years