Equitas Bank IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP

Let’s have a detailed review of the company and analytics of the Equitas Bank IPO release date, IPO offer price, subscription, Equitas Small Finance Bank Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.Stock Broker Complaints


Equitas Bank IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.9/10
Industry Ranking7.2/10
Company Background8.2/10
Company Reputation7.7/10
Competitive Edge7.2/10
Financial Statements8.0/10
Popularity Index7.9/10
Promoters Reputation8.0/10
Retail Appetite7.1/10
Top Brokers Review7.8/10
Overall Ratings7.5/10
Star Ratings★★★★☆

Summary of Equitas Bank IPO

Equitas Small Finance Bank IPO

The Company offer a range of banking products and services to customers with a focus on serving the financially unserved and underserved customer segments in India.

Their strength lies in promoting financial inclusion within these segments, with their group beginning operations in 2007 as an NBFC providing microfinance loans through EMFL. They have been providing housing finance since 2011 through EHFL.

They were the largest SFB in India in terms of number of banking outlets, and the second largest SFB in India in terms of assets under management and total deposits in Fiscal 2019.

They have been able to successfully diversify their loan portfolio and significantly reduce their dependence on their microfinance business as compared to other microfinance companies that have converted to SFBs.

They have also been providing vehicle finance and MSE finance through the Erstwhile NBFC that received its asset finance license in 2012, primarily to economically disadvantaged households. While their business model has transitioned over the years, the provision of sustainable credit to unserved and underserved segments has remained their core focus.

Equitas Bank IPO – Financial Growth

(As per the Restated Financial Statements)

  • They have witnessed significant growth in their business, and in Fiscal 2019 had a market share of 16% in terms of assets under management in India (Source: CRISIL Report).
  • Their Gross Advances (including IBPC issued) have grown from Rs.62,583.62 million as of March 31, 2017 to Rs.117,042.88 million as of March 31, 2019 and was Rs.132,072.87 million as of September 30, 116 2019.
  • Of their Gross Advances (including IBPC issued), secured advances constituted 53.16% as of March 31, 2017 and increased to 70.71% as of March 31, 2019 and further increased to 73.91% as of September 30, 2019.

The Promoter of this company is EQUITAS HOLDINGS LIMITED. The lead manager to the issue is JM Financial Limited, Edelweiss Financial Services Limited, IIFL Securities Limited. The Registrar to this issue is KFin Technologies Private Limited.



Equitas Bank IPO Dates / Launch Date

The opening and the closing date of Equitas Bank IPO is not known yet.


Equitas Bank IPO Subscription 

Day / DateQIBNIIRIITotal Subscription
1st Day – 
2nd Day – 
3rd Day – 
4th Day – 
Shares Offered or Net Issue

The shares subscribed by the public will be updated here.


Equitas Bank IPO Allotment Status

Here, you can find the Allotment Status of this IPO. Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

Equitas Bank IPO Listing Date

Find the dates below on basis of allotment, refund, listing and more:

Basis of Allotment Finalization
Refunds Initiation
Credit of Shares to Demat Account
Share Listing Date

Equitas Bank IPO Price Band / Cash Price

The face value of each share is Rs.10, and the cash price of the IPO is Rs.[●]. 


Equitas Bank IPO Size

This Initial Public Issue of 80,000,000 Equity Shares of Rs.10 each for cash at a price of Rs.[●] per equity share aggregating to Rs.5,500 MILLION.


Equitas Bank IPO Share Offering

Fresh Issue: The Fresh Issue of [●] Equity Shares by their Company of Rs.10 each at a price of Rs.[●] per equity share aggregating to Rs.5,500 million,

Offer for Sale : Offer for sale of up to 80,000,000 Equity Shares by the Promoter Selling Shareholder aggregating up to Rs.[●] million.


Equitas Small Finance Bank Limited – Company Overview

Their focus customer segments include individuals with limited access to formal financing channels on account of their informal, variable and cash-based income profile.

They offer a range of financial products and services that address the specific requirements of these customer segments by taking into account their income profile, nature of business and type of security available. Their asset products are suited to a range of customers with varying profiles.

These include provision of small business loans comprising LAPs, housing loans, and agriculture loans to micro-entrepreneurs, microfinance to JLGs predominantly comprising women, used and new commercial vehicle loans to drivers and micro-entrepreneurs typically engaged in logistics, MSE loans to proprietorships, and corporate loans.

On the liability side, their target customers comprise mass and mass-affluent individuals to whom they offer current accounts, salary accounts, savings accounts, and a variety of deposit accounts. In addition, they also provide non-credit offerings comprising ATM-cum-debit cards, third party insurance, mutual fund products, and issuance of FASTags.

Equitas Small Finance Bank Risk Management Framework

Based on their experience, they apply different credit assessment procedures for their product segments, which is guided by their risk management framework, and supervised by their Risk Management Committee.

They believe that their risk management framework together with their experience of dealing with unserved and underserved customer segments has helped them contain their NPA levels, and improve their credit ratings, which has allowed them to access capital from banks and financial institutions at competitive rates.

Equitas Small Finance Bank – Network of Banking Outlets

As of March 31, 2019, they had the largest network of banking outlets among all SFBs in India (Source: CRISIL Report). As of September 30, 2019, their distribution channels comprised 853 Banking Outlets and 322 ATMs across 15 states and union territories in India.

They also distribute products through digital channels, and leverage technology to identify opportunities to better serve their target customer segment. To this end, they have introduced facial recognition features for transaction authentication in their mobile banking application.

Equitas Small Finance Bank – Asset Products

They categorize their asset products into (i) small business loans; (ii) microfinance; (iii) vehicle finance loans; (iv) MSE finance; (v) loans to corporates; and (vi) other loans. Categorization is largely determined by customer profile, type of security and enduse.

Equitas Small Finance Bank Limited: Business strategies

  • Leveraging on their existing network for deepening penetration and driving operational efficiency
  • Strengthen liability franchise and focus on increasing their retail base to further improve cost of funds
  • Leverage data for analytics to drive operational efficiency
  • Continue to focus on digital products and technology to grow operations
  • Continue to diversify product offerings and leverage cross-selling opportunities
  • Increasingly focus on non-interest income sources

Equitas Small Finance Bank Ltd – Financial Statements

On the basis of Standalone statement:

Amount (in INR & Million)
30-Sep-1930-Sep-1831-Mar-1931-Mar-18Mar-17
Total Assets172,124.63140,492.07157,626.91133,011.5092,501.28
Total Revenue13,659.3911,344.2623,948.3217,729.0312,126.98
Total Expense12,594.0010,548.4521,842.6617,410.7211,085.64
Profit After Tax1,065.39795.812,105.66318.311,041.34

Earnings per Equity Share (in Million)

Amount (in INR & Million)
30-Sep-1930-Sep-1831-Mar-1931-Mar-18Mar-17
Basic & Diluted1.06*0.79*2.090.321.30

Equitas Bank IPO – Promoters

The Promoter of this company is:

  • EQUITAS HOLDINGS LIMITED

List of Related Parties (Key Managerial Personnel)

  • Vasudevan Pathangi Narasimhan, MD and CEO
  • Sridharan Nanuiyer, Chief Financial Officer
  • Sampathkumar K. Raghunathan, Company Secretary and Compliance Officer
  • Dheeraj Mohan, Senior Vice President

Interest in promotion of the Company

Their Promoter is interested in their Bank to the extent it has promoted their Bank and to the extent of its shareholding in the Bank and dividend payable, if any, and other distributions in respect of the Equity Shares held by it.

Interests of Promoter in property of their Company

Their Promoter has no interest in any property acquired in the three years preceding the date of this Draft Red Herring Prospectus or proposed to be acquired by their Bank or in any transaction by their Bank for acquisition of land, construction of building or supply of machinery.


Equitas Bank IPO Offer Details or Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered Up to [●] Equity Shares, aggregating up to Rs.[●] Million
 Of which:
Fresh Issue[●]Equity Shares, aggregating up to Rs.5,500 million
Offer for SaleUp to 80,000,000 Equity Shares, aggregating up to Rs.[●] Million

QIB Portion

Not more than [●] Equity Shares
Of which
Anchor Investor PortionUp to [●] Equity Shares
Net QIB Portion (assuming the Anchor Investor Portion is fully
subscribed)
[●] Equity Shares
Of which:
Mutual Fund Portion[●] Equity Shares
Balance for all QIBs including Mutual Funds[●] Equity Shares

Non-Institutional Portion

Not less than [●] Equity Shares

Retail Portion

Not less than [●] Equity Shares
 Equity Shares outstanding prior to the Issue1,053,401,602 Equity Shares
 Equity Shares outstanding after the Issue[●] Equity Shares

Equitas Bank IPO Issue Object

Their Bank proposes to utilize the Net Proceeds from the Offer towards augmenting their Bank’s Tier I capital base to meet their Bank’s future capital requirements.

Equitas Small Finance Bank Limited: Key Strength

  • Customer centric organization with a deep understanding of the unserved and underserved customer segments
  • Among the largest SFBs in India with a well-diversified asset portfolio
  • Strong retail liability portfolio with a strategic distribution network
  • Customized credit assessment procedures for effective credit risk management
  • Technology as an enabler to drive operating procedures
  • Professional management, experienced leadership and trained employee base

Equitas Bank IPO – Basis of the Offer Price

The Offer Price will be determined by their Bank and the Promoter Selling Shareholder in consultation with the BRLMs, on the basis of assessment of market demand for the Equity Shares offered through the Book Building Process and on the basis of quantitative and qualitative factors as described below.

Qualitative factors are:

Some of the qualitative factors and their strengths which form the basis for computing the Offer Price are:

  • Customer centric organization with a deep understanding of the unserved and underserved customer segments;
  • Among the largest SFBs in India with a well-diversified asset portfolio;
  • Strong retail liability portfolio with a strategic distribution network;
  • Customized credit assessment procedures for effective credit risk management;
  • Technology as an enabler to drive operating procedures; and
  • Professional management, experienced leadership and trained employee base

Equitas Bank IPO – Quantitative Factors

Basic & Diluted EPSRONW in %NAV (Rs.)
31-Mar-171.305.21%
31-Mar-180.321.57%
31-Mar-192.099.40%22.28
  • Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] to Rs.10 per Equity Share
ParticularsP/E ratio (based on basic)P/E ratio (based on diluted EPS)
Highest60.8162.03
Average3.963.96
Lowest21.7021.89

Equitas Small Finance Bank Limited: Competitive Peers

Total Revenue (Rs. in million)Face Value (Rs.)P/E (Basic) (Rs.)P/E (Diluted) (Rs.)EPS (Basic) (Rs.)EPS (Diluted) (Rs.)Return on Net Worth (%)NAV per share (Rs.)
Equitas Small
Finance Bank
Limited
23,948.3210[●][●]2.092.099.40%22.28
Listed Peers
AU Small Finance Bank Limited34,108.651060.8162.0313.1612.9012.07%108.19
DCB Bank Limited33,916.471016.5816.5810.5310.3610.44%100.65
City Union Bank Limited42,815.55124.5024.719.579.4914.11%65.91
Bandhan Bank Limited77,070.991031.4831.5216.3616.3417.42%93.89
Shriram City
Union Finance
Limited
60,698.55109.229.23151.83151.7815.46%985.81
Shriram Transport Finance Limited155,457.01109.509.50113.52113.5216.16%702.35
Cholamandalam Investment & Finance Limited71,088.30103.963.9676.5676.5019.27%396.75
Mahindra & Mahindra Financial Services Limited104,308.55211.1211.1529.7329.6716.57%183.27
Sundaram Finance Limited37,882.381015.2515.25105.40105.4020.13%567.69
CreditAccess Grameen Limited12,833.201034.3534.6923.3723.1413.90%161.27
Spandana Sphoorty Financial Limited10,485.291021.9121.9553.4653.3516.51%316.84

Equitas Bank IPO Lead Managers

Lead Managers
JM Financial Limited
Tel: +91 22 6630 3030
E-mail: esfb.ipo@jmfl.com
Investor grievance e-mail: grievance.ibd@jmfl.com
Website: www.jmfl.com
Contact Person: Prachee DhuriEdelweiss Financial Services Limited
Tel: + 91 22 4009 4400
E-mail: equitassfb.ipo@edelweissfin.com
Investor grievance e-mail: customerservice.mb@edelweissfin.com
Website: www.edelweissfin.com
Contact Person: Nishita John/ Sakshi BansalIIFL Securities Limited
Tel.: +91 22 4646 4600
E-mail: equitas.ipo@iiflcap.com
Investor grievance e-mail: ig.ib@iiflcap.com
Website: www.iiflcap.com
Contact Person: Ujjaval Kumar/ Vishal Bangard

Equitas Bank IPO Registrar to Offer

Registrar to the Offer
KFin Technologies Private Limited
Selenium, Tower B, Plot No. 31 & 32
Financial District, Nanakramguda, Serilingampally
Hyderabad 500 032, Rangareddi, Telangana, India
Tel: +91 40 6716 2222
E-mail: equitassmallfinance.ipo@kfintech.com
Investor grievance e-mail:
einward.ris@kfintech.com
Website: www.kfintech.com
Contact Person: M. Muarli Krishna
SEBI Registration No.: INR000000221

Other Details:

  • Statutory Auditor – S.R. Batliboi & Associates LLP
  • Legal Counsel to the Company – Cyril Amarchand Mangaldas
  • Bankers to the Company – [●]

Equitas Bank IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

Equitas Bank IPO Grey Market Premium

The Equitas Bank IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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Equitas Bank IPO News

News 1 – IPO ISSUE OPENS SOON [Download Prospectus]


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