ESAF Small Finance Bank IPO GMP, Date, Important detail 2021
ESAF Small Finance Bank are among India’s leading small financing banks, in terms of the customer base size, yield on advances, Net Interest Margin, assets under management CAGR, overall deposit CAGR, loan portfolio concentration in agricultural and semi-urban regions, and ratio of micro loan advances to total loans. In August 2021, the ESAF Small Finance Bank IPO will hit the market.
About
ESAF Small Finance Bank have a history of more than 25 years of predominantly helping the unserved and disadvantaged, with an emphasis on financial inclusion, thanks to their Promoters. We must devote at least 75.00 percent of our adjusted net bank credit to priority industries as a small finance bank.
Their business strategy is based on the principles of accountable banking, with a focus on customer-centric products and services delivered via the use of technology.
They had 550 offices, 421 client service centres (which are managed by their business correspondents), 12 business correspondents, 158 banking representatives, and 327 ATMs as of May 31, 2021, serving over 4.68 million clients in 21 states and two union territories.
Business Model
They pursue a triple bottom line effect through a social business approach that focuses on people, the environment, and wealth.
They think that their company’s social, environmental, and economic outcomes generate synergies that benefit all of our stakeholders.
Their bank was founded on the heritage of a commitment to combat prosperity partiality (i.e., the push for inclusion of marginalised sectors of society, equitable distribution of wealth, and equity of opportunity).
Their aim is to be India’s foremost social bank, providing equitable opportunities for all via universal financial inclusion, as well as livelihood and economic growth.
Deposits
Current accounts, savings accounts, term deposits, and recurring deposits are among their liabilities products. NRI clients are also addressed to, with NRE and NRO current accounts, savings accounts, term deposits, and recurring deposits available.
As to March 31, 2021, 2020, and 2019, their total deposits were 89,994.26 million, 70,283.82 million, and 43,170.08 million, respectively.
Among their comparable peers, they achieved the second largest deposit growth throughout Fiscals 2019–21 and the highest share of retail deposits as a percent of overall deposits as of Mar 31, 2020.
As of March 31, 2021, 2020, and 2019, their retail deposits accounted for 97.74 percent, 95.08 percent, and 92.43 percent of their total deposits, respectively.
ESAF Small Finance Bank IPO
ESAF Small Finance Bank, headquartered in Kerala has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 997.78 Crore on 24 July, 2021.
There will be fresh issue of 800.00 Crore & OFS (Offer for sale) up to 197.78 value equity shares from existing Promoters mentioned in the DRHP of the company.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market. They will try lunch the ipo as soon as they will get the approval as RBI has given them deadline of 31st July 2021
Pre- IPO Placement
As per the initial prospectus, the firm may contemplate offering equity shares on a private placement basis for cash consideration, collecting up to INR 3 billion as a pre-IPO placement.
ESAF Small Finance Bank received INR 1.62 billion in April through a preferential offering of 21.8 million equity shares at INR 75 each, resulting in a 5% ownership reduction.
Originally published at https://profitmust.com on July 28, 2021.
