ESAF Small Finance Bank IPO: Check GMP Today, Latest Subscription Status

ESAF Small Finance Bank IPO: The initial public offering of ESAF Small Finance Bank, which opened for public subscription on Friday, has been subscribed 1.74 times on the first day of subscription. The Rs 463-crore IPO received bids for 10,02,26,500 shares against 5,77,28,408 shares on offer.

The ESAF Small Finance Bank IPO will conclude on Tuesday, November 7.

The category for non-institutional investors got subscribed 2.44 times while the quota for Retail Individual Investors (RIIs) received 1.97 times subscription. The portion for Qualified Institutional Buyers (QIBs) was subscribed 90 per cent.

Ahead of the IPO, ESAF Small Finance Bank on Thursday collected Rs 135 crore from anchor investors.

The IPO allotment will take place on November 10, while the company is likely to list on the BSE and NSE on November 16.

ESAF Small Finance Bank IPO GMP Today

According to market observers, unlisted shares of ESAF Small Finance Bank remain Rs 20 higher in the grey market as compared to its issue price. The Rs 20 grey market premium or GMP is about 33.33 per cent higher than its upper issue price of Rs 60 per share. This means the grey market is expecting a 33.33 per cent listing gain from the public issue.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

About ESAF Small Finance Bank IPO

The price band of the Rs 463-crore IPO has been fixed at Rs 57-60 per share.

The Rs 463-crore Initial Public Offering (IPO) comprises a fresh equity issue of Rs 391 crore and an offer for sale (OFS) of Rs 72 crore. Those selling shares in the OFS are promoter – ESAF Financial Holdings Private Ltd and other shareholders – PNB MetLife India Insurance Company Ltd, and Bajaj Allianz Life Insurance Company Ltd.

Investors can bid for a minimum of 250 equity shares and in multiples of 250 equity shares thereafter. Currently, ESAF Financial Holdings owns a 62.46 per cent stake in the small finance bank, while PNB MetLife and Bajaj Allianz Life own 4.75 per cent and 3.89 per cent stake, respectively, in the lender.

Proceeds of the fresh issue will be utilised to augment the bank’s Tier-1 capital base. Price range for the offer is at Rs 57-60 a share.

ICICI Securities, DAM Capital Advisors and Nuvama Wealth Management are the managers to the offer. The equity shares of the bank will be listed on the BSE and the NSE.

About ESAF Small Finance Bank

ESAF Small Finance Bank is one of the leading small finance banks in India in terms of client base size, yield on advances, net interest margin, assets under management, Compound Annual Growth Rate (CAGR), total deposit CAGR, loan portfolio concentration in rural and semi-urban areas and ratio of micro loan advances to gross advances.