Equitas Small Finance Bank has received market regulator Securities and Exchange Board of India's nod for its initial public offer.
The offer consists of a fresh equity worth Rs 550 crore and an offer for sale of 8 crore equity shares, according to the draft red herring prospectus.
The observation letter (indicating a go-ahead to the IPO) was issued on Feb. 28, 2020, according to an update on the regulator's website.
Securities and Exchange Board of India's observations are necessary for any company to launch public issues such as initial public offer, follow-on public offer and rights issue.
The bank proposes to utilise the net proceeds from the offer towards augmenting its Tier I capital base to meet future capital requirements, as per the prospectus.
The equity shares are proposed to be listed on BSE and NSE. JM Financial, Edelweiss Financial Services and IIFL Securities are managing the offer.
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