Shares of Equitas Holdings settled at Rs 135.25 on BSE, a premium of 22.95% compared with initial public offer price of Rs 110 on its debut on the bourses today, 21 April 2016.
Meanwhile, the S&P BSE Sensex rose 36.20 points or 0.14% to settle at 25,880.38.
The stock debuted at Rs 144, a premium of 30.9% to the initial public offer (IPO) price. The stock hit a high of Rs 147 and low of Rs 134.15 in intraday trade. On BSE, 3.08 crore shares were traded on the counter.
The IPO of Equitas Holdings which ended on 7 April 2016, received strong response from qualified institutional buyers (QIBs) and non-institutional investors categories.
Meanwhile, the Reserve Bank of India (RBI) notified yesterday, 20 April 2016, that the aggregate investment ceiling in Equitas Holdings for foreign institutional investors (FIIs)/foreign portfolio investors (FPIs) under portfolio investment scheme remains at 24% and total foreign investment from all sources i.e. global depository receipts (GDR)/American depository receipts (ADR)/foreign direct investment (FDI)/foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs)/non-resident Indians (NRIs)/persons of Indian origin (PIOs) shall not exceed 49%.
Based on consolidated financials, Equitas Holdings reported net profit of Rs 120.36 crore on revenue from operations of Rs 791.34 crore for 9 months ended December 2015. The company reported net profit of Rs 106.62 crore on revenue from operations of Rs 755.06 crore for the year ended 31 March 2015 (FY 2015).
The company's gross non-performing assets (NPA) as a percentage of On-Book assets under management (AUM) stood at 1.33% as on 31 December 2015. The net NPA stood at 0.97% as on 31 December 2015.
Equitas Holdings is a diversified financial service provider focused on individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels. The company offers a range of financial products and services including microfinance, used commercial vehicle finance, MSE finance and housing finance. The focus customer segment includes low-income groups and economically weaker individuals operating small businesses, as well as MSEs with limited access to formal financing channels.
As on 31 December 2015, Equitas Holdings' operations were spread across 11 states, one union territory and the NCT of Delhi with a total of 539 branches. Equitas Holdings has received in-principle approval from the Reserve Bank of India (RBI) to set up a small finance bank (SFB). The company intends to leverage its large branch network and large customer base across India to develop SFB operations.
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