ESAF Small Finance Bank IPO subscribed 1.74 times on first day of offer

The initial public offer of ESAF Small Finance Bank got subscribed by 1.74 times on the first day of subscription on Friday.

The Rs 463-crore initial share sale received bids for 10,02,26,500 shares against 5,77,28,408 shares on offer, as per NSE data.

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.

The Initial Public Offering (IPO) has a fresh issue aggregating up to Rs 390.7 crore and offer for sale (OFS) of up to Rs 72.3 crore.

The IPO will conclude on November 7.

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.

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.

ESAF Small Finance Bank on Thursday said it has collected Rs 135 crore from anchor investors.

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.

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.