InvestorQ : How was the response to the Equitas Small Finance Bank IPO?
Lavanya Subramanian made post

How was the response to the Equitas Small Finance Bank IPO?

Anamika Sodhani answered.
7 months ago

It would not be inappropriate to say that it was a last minute scrape-through for the Equitas Small Finance Bank IPO, a subsidiary of Equitas which had to shed its equity holding in the subsidiary as per RBI regulations.

The issue which opened on October 20 closed for subscription on 22 October. The Rs 518 crore IPO was finally subscribed 1.95 times with the qualified institutional buyers or the QIB quota subscribed 1.92 times. QIBs have 50% allocation in any book built IPO.

The retail portion had already been fully subscribed on the second day itself but the HNI portion which has a 15% allocation left a lot to be desired. Normally, this segment is only active where funding is attractively available and banks look for oversubscription.

The Equitas Small Finance Bank IPO is a combination of fresh issue of Rs.280 and an offer for sale of Rs.238 crore. In the OFS, Equitas will pare its stake in the SFB. Equitas SFB had already raised Rs.139.68 crore from anchor investors.

The IPO is expected to list on November 2 on NSE and BSE and the pricing, it looks like, may happen at the lower end of the band considering the tepid response. In the last few weeks, most IPOs have seen tremendous response from Indian IPO investors.