InvestorQ : How was the listing of Equitas Small Finance Bank on the day of listing?
ishika Banerjee made post

How was the listing of Equitas Small Finance Bank on the day of listing?

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4 months ago
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Equitas Small Finance Bank, part of the Equitas group, made an extremely tepid debut on Monday. It listed at a 6% discount to its issue price at Rs.31.10 as opposed to its issue price of Rs.33. It may be recollected that the IPO had been oversubscribed 1.95 times.

However, most brokers are of the view that the pricing in P/BV terms is quite reasonable and hence there is no worry for long term investors. Equitas Small Finance Bank has a capital adequacy ratio of 21.6%, of which the Tier 1 capital stands at 20.6%. In fact post issue this will go up to 24%.

This was a part OFS because promotes had to cut stake as per the RBI stipulations. Post the IPO, promoter stake will fall to 82% and this will have to be pruned further to 40% by September 2021, 30% by September 2026 and subsequently to 26% by September 2028.

Equitas Small Finance Bank is the largest small finance bank in India by number of banking outlets, and the second largest in India in terms of AUM. It has a product portfolio consisting of business loans, housing loans, agriculture loans, vehicle loans and MSMEE loan. It also offers deposits of different kinds and also offers non-credit services like ATMs, MF products etc.

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