New Listing: Equitas Small Finance Bank

  • Equitas Small Finance Bank listed at Rs 31 on BSE, a 6 percent discount to the issue price of Rs 33 per share.

  • The company’s Rs 517.6 crore initial public offer (IPO) was open for subscription from October 20 till October 22.

  • The IPO was subscribed 2 times and received bids for 22.57 crore equity shares as against the offered size of 11.58 crore equity shares.

Equitas Small Finance Bank listed at Rs 31 on BSE, a 6 percent discount to the issue price of Rs 33 per share. At 10:02 am, the stock was trading 6.5 percent lower at Rs 30.85 per share as compared to a 0.6 percent decline in BSE Sensex at 39,383.

The company’s Rs 517.6 crore initial public offer (IPO) was open for subscription from October 20 till October 22. This is the third public issue in the small finance bank space, following the footsteps of AU Small Finance Bank and Ujjivan Small Finance Bank.

The issue price was fixed in the price band of Rs 32-Rs 33 per share and the public issue consisted of a fresh issue of Rs 280 crore (8.5 crore shares) and an offer for sale of 7.2 crore equity shares by Equitas Holdings (valued at Rs 237.6 crore at the upper price band).

The IPO was subscribed 2 times and received bids for 22.57 crore equity shares as against the offered size of 11.58 crore equity shares.

Most analysts recommended a ‘Subscribe’ rating on the issue with a long-term view given the bank’s well-diversified advances, strong capital ratio, steady asset quality, adequate liquidity position, and vast opportunity for business as it serves unserved and underserved customers.