ESAF Small Finance Bank gets Sebi nod for IPO

Kerala-based ESAF Small Finance Bank on Thursday said it has received Sebi's approval for its Rs 976 crore initial public offering (IPO).

The company had filed draft red herring prospectus (DRHP) on January 6, 2020 with the markets regulator.

According to the DRHP, the IPO comprises of a fresh issue worth Rs 800 crore and an offer for sale (OFS) aggregating up to Rs 176.2 crore.

The proceeds from the fresh issue will be used to augment the bank's tier 1 capital to meet future capital requirements.

Of the total offer, 75 per cent will be available for allocation to qualified institutional buyers (QIBs), 15 per cent to non-institutional bidders and 10 per cent to retail individual bidders.

The microfinance loans accounts for 95.75 per cent of the total gross advances.

Its loan book outside Kerala has grown from Rs 549 crore in March 2017 to Rs 2,540 crore as on September 30, 2019 which is 48.46 per cent of the total microfinance loan book size, while the total gross advance as at September 30, 2019 stood at Rs 5,474 crore.

It currently operates in 16 states and one Union Territory through its 403 branches and 38 ultra-small branches, serving over 37.3 lakh customers.