Equitas SFB IPO subscribed two times even as HNIs give offer a miss

The initial public offer (IPO) of Equitas Small Finance Bank garnered nearly two times subscription.

The institutional investor portion was subscribed 3.8 times, while the retail investor portion was subscribed 2 times. Wealthy investors gave the IPO a miss with the high networth individual (HNI) portion garnering just 0.23 times subscription.

The company had earlier allotted shares worth Rs 139 crore to 35 anchor investors. The IPO comprised a fresh issue of Rs 280 crore and an offer for sale of 7.2 crore equity shares. The company had priced the IPO between Rs 32-33 per share.

The net proceeds from the fresh issue will be used towards augmenting tier-I capital base to meet its future capital requirements. Equitas is the third small finance bank to come with an IPO after AU Small Finance Bank and Ujjivan Small Finance Bank. The company provides microfinance loans, housing finance, vehicle finance, and MSE finance.

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First Published: Thu, October 22 2020. 19:25 IST

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