Equitas Small Finance Bank witnessed a muted response to its initial public offering on day one of bidding.
The issue was subscribed 24% as of 2:09 p.m. on Oct. 20., led by retail investors who bid for 53% of the shares on offer. Institutional investors, high net-worth individuals, employees and shareholders, however, have hardly shown any interest in the sale.
Here are the subscription details:
- Institutional investors: 0%
- High net-worth individuals: 1%
- Retail investors: 53%
- Employees: 1%
- Shareholders: 7%
The Equitas Small Finance Bank IPO—set to end on Oct. 22—comprises a fresh issue of up to 8.75 crore shares worth Rs 280 crore, and an offer-for-sale of 7.2 crore shares by parent Equitas Holdings Ltd. The price band has been fixed at Rs 32-33 apiece.
According to a statement, India's second-largest microfinance bank by deposits has raised Rs 139.68 crore by allocating over 4.2 crore shares to 35 anchor investors at the upper end of the price band.
At least three brokerages recommended investors to subscribe to the Equitas Small Finance Bank IPO, citing a well-diversified portfolio, stable asset quality and an under-served market. They highlighted some concerns as well.
Research reports on Equitas Small Finance Bank IPO:
- IDBI Capital: Equitas Small Finance Bank IPO - Better Product Diversification Among Its Peers
- ICICI Direct: Equitas Small Finance Bank IPO - Well Diversified Portfolio With Fastest Shift Towards Non-MFI Loans
- KRChoksey: Equitas Small Finance Bank IPO - Investment Rationale
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