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.

Face ValueRs 10
Price BandRs.32-33
Listing AtBSE, NSE
Min. Order Quantity450 shares
Listing Date Nov 2, 2020
Offer for Sale237.60 Cr.
Fresh Issue280.00 Cr.
IPO Size517.60  Cr.
Tick Size1

Check out Equitas Bank IPO Allotment Status

Equitas Bank IPO is listed at NA premium, check out the live share price by clicking on the below link.

Equitas Bank Share Price – Live Performance

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.

Equitas Small Finance Bank 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.

Equitas Small Finance Bank 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.

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 Oct 20, 2020 – Oct 22, 2020.


Equitas Bank IPO Subscription 

Day / DateQIBNIIRIIEmployeeOthersTotal Subscription
1st Day – Oct 200.00x0.01x0.38x0.12x0.05x0.17x
2nd Day – Oct 210.00x0.02x0.64x0.25x0.08x0.29x
3rd Day – Oct 223.80x0.14x1.94x1.67x0.36x1.84x
Total Shares Offered2,79,75,0012,14,87,5005,01,37,5003,12,5001,59,37,50011,58,50,001

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 FinalizationOct 27, 2020
Refunds InitiationOct 28, 2020
Credit of Shares to Demat AccountOct 29, 2020
Share Listing DateNov 2, 2020

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. 32-33.


Equitas Bank IPO Size

This Initial Public Issue Equity Shares of Rs.10 each for cash at a price of Rs. 32-33 per equity share aggregating to Rs. 517.60 Crore.


Equitas Bank IPO Share Offering

Fresh Issue: aggregating up to Rs. 280.00 Cr

Offer for Sale : aggregating up to Rs. 237.60 Cr


Equitas Bank IPO – Live Performance

The listing date of this IPO is not updated. You can check the live performance of the IPO here, only after it is listed on exchanges.

Live IPO Performance – Equitas Bank Share Price

Equitas Bank IPO Grey Market Premium

The Equitas Bank IPO Grey Market Premium price is 8-10, the Kostak rate is Rs X and the Subject to Sauda is 2000. 


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.

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.

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 Ltd – Financial Statements

On the basis of Standalone statement:

Amount (in INR & Million)
30-Jun-2030-Jun-1931-Mar-1931-Mar-1831-Mar-18
Total Assets208,921.39166,647.99193,145.47157,626.91133,011.50
Total Revenue7,509.686,625.5029,277.9523,948.3217,729.03
Total Expense6,932.976,054.9026,841.6021,842.6617,410.72
Profit After Tax576.71570.602,436.352,105.66318.31

Earnings per Equity Share (in Million)

Amount (in INR & Million)
30-Jun-2030-Jun-1931-Mar-1931-Mar-1831-Mar-18
Basic & Diluted0.55*0.57*
2.39
2.090.32

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.

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 PortionNot 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 PortionNot 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 IPO : 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


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

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    Equitas Bank IPO News

    News 1 – IPO ISSUE OPENS SOON [Download Prospectus]

    News 2 – Equitas IPO RHP Download


    Equitas IPO Review FAQs

    Ques – What is the Issue Size of EQUITAS IPO?

    Answer – Issues size of any company is equal to the number of shares offered to the general public multiplied by the per share price. Keeping into account the Equitas Bank IPO issue size, the amount is 532 Cr. The offer consists of a fresh issue and also offer for sale.

    Ques – What is the Price band?

    Answer – The details of the company are released, and we have the information regarding its Price band. This price band is the lower and the upper range in which the IPO will be priced. According to the data provided, the price band of Equitas is Rs.66 – Rs.70.

    Ques – What is the Equitas IPO Open Date?

    Answer – The open and the close date of this IPO is not provided yet. This is the time duration between which the allotment process goes on, and the final share holders are determined. The shares of the company are set to be listed in both the stock exchanges, i.e. NSE and BSE.

    Ques – What is the IPO Allotment Date?

    Answer – The details on the IPO allotment date is not issued by the company yet. It is the date when the basis of allotment finalization is done. This is followed by the process of refunds initiation and then the shares are credit to the demat account for the shareholders.

    Ques – What is the IPO Listing Date?

    Answer – The IPO listing date is the day when the shares of this company are offered to sale in the stock exchanges, after going through the IPO process. When the company goes public through the IPO issues, and the entire process is over, the shares are listed. The listing date of Equitas Bank is NA yet.

    Ques – Who is the Registrar of this IPO?

    Answer – The designated registrar to this IPO is KFin Technologies Private Limited. It is one of the most popular registrars in the market, and are located in Hyderabad, Telangana. The official website of the company is www.kfintech.com.

    Ques – Who is the Promoter of this Company?

    Answer – The promoter of this company is EQUITAS HOLDINGS LIMITED. The Equitas Small Finance Bank Limited(ESFBL) is the subsidiary of EQUITAS HOLDINGS LIMITED, who is also its promoter, and is a professionally managed company.

    Ques – What is GMP of Equitas IPO?

    Answer – The GMP is the amount at which the shares are being traded in the grey market before they are listed on the stock exchanges. The GMP has an effect on the share, on the day they are listed in the stock exchanges. The GMP of the stock as on 14th October is Rs.5

    Ques – Is Equitas IPO good for Investment?

    Answer – Yes, this bank is one of the well emerged financial institutions, and a subsidiary of Equitas Holdings Limited. It started its operations as a microfinance lender which was founded by Equitas, which later on went to receive its banking license from RBI, post which it began banking as subsidiary of Equitas Holdings Limited in 2016.

    Ques – What is the PAT of this Company?

    Answer – PAT is a very crucial indicator, which shows the company’s standing and performance. PAT or profit after tax insights for the year ended 2019 was 2,105.66 million. We also have the insights from the previous 2 years, i.e. the PAT for 2018 was 318.31 million, and that for 2017 was 1,041.34 million


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