Equitas plans to launch IPO next month, may raise Rs 2,000 cr

Equitas Holdings, which has got a licence for small finance bank, is expected to hit the capital markets in the first half of April to raise an estimated Rs 2,000 crore through an initial public offering (IPO).

This could be the first small finance bank licence holder to list on stock exchanges.

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Another microfinance lender Ujjivan Financial Services had received Sebi's clearance last month to mop up funds through initial share sale programme, but its IPO date could not be ascertained.

As per the draft papers, Equitas' public offer comprises fresh issue of shares worth Rs 600 crore and an offer for sale by existing shareholders, including Sequoia Capital, WestBridge, Aavishkaar, Helion Capital and International Finance Corporation (IFC).

According to sources, the company is expected to hit the Dalal Street in the first half of April. It will raise an estimated Rs 2,000 crore through its IPO.

Equitas, in September 2015, had received in-principle approval from the Reserve Bank to set up small finance banks to provide basic banking services to small farmers and micro industries.

The firm, which had filed its draft red-herring prospectus (DRHP) with Sebi in October last year, had obtained clearance from the capital markets regulator in January.

Axis Capital, ICICI Securities, HSBC and Edelweiss Financial Services are managing the company's IPO.