Equitas SFB IPO Closes on 22nd October: Should You Invest?

Equitas Small Finance Bank kicked off its initial public offerings on Tuesday, 20th October 2020. By the end of the first day, the IPO was subscribed by 39%. The IPO will close on Thursday 22nd October 2020.

Equitas SFB IPO Overview

Equitas SFB was the biggest small finance bank in India in the year 2019 in terms of total outlets and second largest in terms of Asset under management and total deposits.

The small finance bank Equitas established in the year 1993 headquarter in Chennai. The bank has diversified portfolio and has a small dependency on microfinance business.

The main focus of the company is to serve undeserved customers or those who are still not getting banking facilities. Equitas offers a wide range of products and services to its client.

Equitas SFB gives microfinance loan opportunity to the customers like vehicle finance, MSE finance etc. Apart from this one can easily open a savings account, current account, mutual fund products, ATM-cum debit cards, and other banking facilities as well.

As of 30th Sep 2019, the total number of the bank’s outlets was 853 with 322 ATMs in 15 states of India including union territories.

Equitas SFB IPO Details

Issue type- Book built

Issue size: Equity shares @Rs.10 aggregating up to Rs. 517.60 cr.

Fresh issue: Equity shares @Rs.10 aggregating up to Rs. 280.00 cr.

Offer for sale: 72,000,000 equity share @Rs.10 aggregating up to Rs. 230.60 cr.

Face value: Rs. 10 per equity share

IPO Price: Rs.32-Rs.33 per equity share

Listing At: NSE, BSE

Objective of Equitas SFB IPO will be to meet the future capital requirement.

Should you Invest?

The financials of the small finance bank Equitas is very attractive. It shows an upward trend in PAT. The company had 318.00 million PAT in the financial year ended 31st March 2018, it was 2,105.66 million for the period ended 31st March 2019, it was 2,436.00 million for 2020. So, on the basis of financials, the company looks attractive.

The past good financial performance of Equitas SFB IPO is a future growth driver and diversification of products and services offers by the bank also gives the opportunity to grow in future. So, it will add value in your investment portfolio if you subscribe to this IPO.