ESAF SFB refiling draft papers for IPO, will finish process by Dec

Issue size to smaller than earlier plan of Rs 998 crore, says company's CEO

ESAF Small Finance Bank will complete refiling the draft prospectus for its initial public offering (IPO) by December after being unable to complete the process to an earlier timeline, said Kadambelil Paul Thomas, the firm’s MD and CEO.

Thomas said the bank would now opt for a smaller IPO than the earlier planned offering of Rs 998 crore.

“Exact amount has not been decided but the general view is that we will go for a smaller size. Current CRAR is 20 per cent. We require capital. It will take 2 months to get Sebi’s approval,” he said on the sidelines of a banking event in Mumbai, referring to the market regulator.

“We could not complete the earlier timeline. We are in the process of re-filing draft prospectus. We got the approval last year but we could not complete. (It will be done) In a month’s time, so by December,” Thomas said.

The IPO will likely happen in the next financial year. In October 2021, the Kerala-based small finance bank received Sebi’s approval to go ahead with its IPO. The company had filed its draft papers in July 2021.

Thomas said that the small finance bank was unable to go through with the earlier timeline because of volatile market conditions, with the Ukraine war contributing to the turbulence.

The earlier plan of a Rs 998 crore public issue had comprised a fresh issue of equity shares worth Rs 800 crore and an offer for sale of Rs 197.78 crore by existing selling shareholders.