ESAF Small Finance Bank IPO Watch: Check out GMP, Subscription Status, Reviews, and More Details
ESAF Small Finance Bank has kicked off its initial public offering (IPO) today, with the subscription window remaining open until November 7. The price band for the IPO is established at ₹57 to ₹60 per equity share, providing potential investors with a clear range to consider.
The reserved shares for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors signify a strategic approach to catering to diverse investor categories.
As an added incentive, eligible employees have the opportunity to avail themselves of a discount of ₹5 per share, enhancing the appeal of the IPO. This well-structured offering aims to engage a broad spectrum of investors, setting the stage for an interesting and dynamic market response.
In the latest market buzz, ESAF Small Finance Bank’s unlisted shares are currently commanding a premium of ₹10, as reported by market analysts. This positive trend in the unlisted market suggests a heightened interest and confidence among potential investors.
ESAF Small Finance Bank Unlisted Shares Command ₹10 Premium: Anticipating IPO Enthusiasm
With ESAF having established a price band of ₹57-60 per share for its upcoming IPO, investors are allowed to bid for a minimum of 250 shares, with the option to increase their stake in multiples thereafter. The premium in the unlisted market not only reflects optimism surrounding the bank’s performance but also adds an intriguing layer for those considering participation in the IPO.
As the bidding unfolds, the market dynamics and investor response will likely play a crucial role in shaping the trajectory of ESAF Small Finance Bank’s journey into the public domain.
Retail and Non-Institutional Investors Show Enthusiasm, QIB Participation Limited
Non-Institutional and Retail Investors Embrace ESAF Small Finance Bank IPO, While QIB Participation Remains Limited
The non-institutional investors category displayed a healthy enthusiasm, subscribing 1.04 times, indicating a favourable response to ESAF Small Finance Bank’s public offering. Retail individual investors (RIIs) also showcased keen interest, with a subscription rate of 1.25 times. However, the qualified institutional buyers (QIBs) segment experienced modest participation, garnering bids for just 10,500 shares compared to the substantial 1,58,07,017 shares on offer.
Leading up to the IPO, ESAF Small Finance Bank successfully raised Rs 135 crore from anchor investors on Thursday, setting a promising tone for the public offering.
Investors eager to be part of ESAF’s growth journey have until November 7 to participate in the IPO. The IPO allotment is scheduled for November 10, with expectations of the company making its debut on the BSE and NSE on November 16. As the subscription numbers unfold, the market anticipates the potential impact on ESAF Small Finance Bank’s market entry and subsequent trading dynamics.
Established in 1992, ESAF Small Finance Bank has carved a niche by catering to the financial needs of rural and semi-urban customers, placing a strong emphasis on providing loans. The bank’s diverse product portfolio encompasses microloans, retail loans, MSME loans, loans to financial institutions, and agricultural loans. As of March 2023, the bank has woven an extensive network, boasting 700 outlets, 743 customer service centres, 20 business correspondents, and 481 business facilitators, complemented by 581 ATMs spanning across 21 Indian states.
ESAF Small Finance Bank is at the forefront of digital banking, offering a suite of services including internet banking, mobile banking, SMS alerts, bill payments, and RuPay branded ATM cum debit cards.
The driving force behind the bank’s success lies in the leadership of its promoters, Kadambelil Paul Thomas and ESAF Financial Holdings Private Limited. Currently holding a pre-issue shareholding of 74.43%, their stake is poised to decrease to 62.64% post-issue. This strategic move positions ESAF Small Finance Bank for continued growth and innovation in the dynamic landscape of Indian finance.