InvestorQ : How has been the IPO response to the Equitas Small Finance Bank IPO?
diksha shah made post

How has been the IPO response to the Equitas Small Finance Bank IPO?

shrinidhi Rajan answered.
7 months ago

At a time when most IPOs in the market have been extremely well received, the response to the Equitas Small Finance Bank has been far from encouraging. The IPO opened on 20 October and closes on 22 October.

At the end of the first two days of the IPO, the initial response to the Equitas SFB IPO has been less than flattering, at least if you go by the subscription numbers. As of the end of 21 October, the second day of the IPO, the IPO had received subscriptions to the tune of 67% of the overall issue size.

In other words, out of the total 11.58 crore shares on offer, the IPO only received bids for 7.8 crore shares in total across all the categories of investors. The issue has 50% reserved for QIBs, 35% for retail up to Rs.2 lakhs and the balance 15% for HNIs.

The break-up of investors is not too great in terms of response. For example, the retail portion was the only encouraging part which got subscribed 1.42 times as of the end of the second day of the IPO. That could be more because it is a low priced issue.

The HNI portion or non-institutional portion got just 5% and the funding demand is very weak considering the tepid listing expected. Even the QIB portion got subscriptions of just 5% till Tuesday, although most QIB bids come on the last day. The Equitas SFB closes for subscription on 22 October.