Let’s have a detailed review of the company and analytics of the ESAF Small Finance Bank IPO release date, size, IPO offer price, ESAF Bank IPO subscription, ESAF Small Finance Bank IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
ESAF Small Finance Bank IPO Review & Ratings
| IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 7.9/10 |
| Industry Ranking | 7.2/10 |
| Company Background | 8.2/10 |
| Company Reputation | 7.7/10 |
| Competitive Edge | 7.2/10 |
| Financial Statements | 8.0/10 |
| Popularity Index | 7.9/10 |
| Promoters Reputation | 8.0/10 |
| Retail Appetite | 7.1/10 |
| Top Brokers Review | 7.8/10 |
| Overall Ratings | 7.5/10 |
| Star Ratings | ★★★★☆ |
Summary of ESAF Small Finance Bank IPO
They are one of the leading small finance banks in terms of yield on advances, AUM growth rate and share of retail deposits. Along with their Promoters, they have a history of more than 25 years of primarily serving the unserved and underserved, with a focus on financial inclusion.
Their business model focuses on the principles of responsible banking, providing customer-centric products and services through the extensive application of technology. As at November 30, 2019, they had operations in 16 states and one union territory, 403 Branches, 38 Ultra-Small Branches and they served over 3.73 million customers.
From FY 2016-17 to FY 2018-2019, as per the Restated Financial Statements
- As at September 30, 2019 and as at March 31, 2019, 2018 and 2017, their total gross advances were Rs. 54,742.35 million, Rs. 45,870.63 million,Rs. 31,913.34 million 111 and Rs. 14,897.34 million, respectively
- For September 30, 2019 and as at March 31, 2019, 2018 and 2017 their CRAR was 25.69% (Tier 1 capital of 21.99%), 27.59% (Tier 1 capital of 23.30%), 16.92% (Tier 1 capital of 12.40%), and 16.27% (Tier 1 capital of 13.39%), respectively.
- As at September 30, 2019 and March 31, 2019, 2018 and 2017, their gross microfinance loans represented 95.75%, 96.31%, 98.43% and 97.48% of their total gross advances.
- The percentage of their net NPAs to net advances was 0.62%, 0.77%, 2.69% and 0.25%, respectively.
The Promoters of this company are KADAMBELIL PAUL THOMAS and ESAF FINANCIAL HOLDINGS PRIVATE LIMITED. The lead managers to the issue are Axis Capital Limited, Edelweiss Financial Services Limited, ICICI Securities Limited and IIFL Securities Limited. The Registrar to this issue is Link Intime India Private Limited.
ESAF Small Finance Bank IPO Dates
The opening and the closing date of ESAF Small Finance Bank IPO is not known yet.
ESAF Small Finance Bank IPO Subscription
| Day / Date | NII | RII | Total Subscription |
| 1st Day – | |||
| 2nd Day – | |||
| 3rd Day – | |||
| 4th Day – | |||
| Shares Offered or Net Issue |
The shares subscribed by the public will be updated here.
ESAF Small Finance 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.
| Basis of Allotment Finalization | – |
| Refunds Initiation | – |
| Credit of Shares to Demat Account | – |
| Share Listing Date | – |
ESAF Bank IPO Price Band / Cash Price
The face value of each share is Rs.10, and the cash price of the IPO is Rs.[●].
ESAF Bank IPO Size
This Initial Public Issue of [●] Equity Shares of Rs.10 each for cash at a price of Rs.[●] per equity share aggregating to Rs.9,762.40 Million.
ESAF Small Finance 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.8,000.00 million,
Offer for Sale : Offer for sale of up to [●] Equity Shares by the Promoter Selling Shareholder aggregating up to Rs. 1,762.40 million.
ESAF Small Finance Bank Limited – Company Overview
They can trace their roots back to 1992, when Kadambelil Paul Thomas, their Managing Director and Chief Executive Officer, along with others, founded ESAF Society, a society focused on the development of microenterprises, community development, and community health development.
ESAF Society started its microfinance activities in 1995. In 2006, Kadambelil Paul Thomas along with others acquired their Corporate Promoter. ESAF Society transferred its microfinance business undertaking to their Corporate Promoter in 2008 pursuant to a business transfer agreement dated March 31, 2008.
ESAF Small Finance Bank Approach
They follow a social business strategy with a triple bottom line approach, emphasising people, the planet and prosperity. Their goal is to become one of India’s leading banks in the microfinance sector that offers equal opportunities through universal financial access and inclusion and livelihood and economic development.
ESAF Small Finance Bank – Product Portfolio
Their asset products comprise microfinance loans, retail loans and other loans and advances.
Their liability products comprise current accounts, savings accounts, fixed deposits and recurring deposits. They also serve NRI customers and offer NRE and NRO saving accounts fixed deposits and recurring deposits.
Further, they distribute third-party life and general insurance policies, government pension products and point of sales (“POS”) terminals. They also provide foreign exchange services, which include currency exchange and outward and inward remittances.
ESAF Small Finance Bank Distribution
They deliver their products and services through their business correspondents, Branches, Ultra-Small Branches, ATMs, ATM cum debit cards, mobile banking platforms, SMS alerts, internet banking portals and unified payment interface facilities. This Company has a strong focus on leveraging technology to deliver products and services.
They use business correspondent entities for sourcing and servicing of customers for microfinance loans, select deposit products and select third-party products.
ESAF Small Finance Bank Ltd – Financial Statements
On the basis of Standalone statement:
| Amount (in INR & Million) | |||||
| 30-Sep-19 | 30-Sep-18 | 31-Mar-19 | Mar-18 | 31-Mar-17 | |
| Total Assets | 85,545.62 | 62,425.84 | 70,584.13 | 47,253.88 | 29,377.15 |
| Total Revenue | 7,288.75 | 5,329.29 | 11,407.89 | 6,986.99 | 482.10 |
| Total Expense | 6,364.35 | 5,088.69 | 10,505.05 | 6,717.05 | 474.47 |
| Profit After Tax | 1,804.36 | 448.77 | 1,111.01 | 275.66 | 7.63 |
Earnings per Equity Share (in Million)
| Amount (in INR & Million) | |||||
| 30-Sep-19 | 30-Sep-18 | Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Basic & Diluted | 2.16 | 0.72 | 2.37 | 0.89 | 0.07 |
ESAF Small Finance Bank IPO – Promoters
The Promoters of this company are:
- KADAMBELIL PAUL THOMAS
- ESAF FINANCIAL HOLDINGS PRIVATE LIMITED
List of Related Parties (Key Managerial Personnel)
- Ranjith Raj P, Company Secretary and Compliance Officer
- Gireesh C.P., Chief Financial Officer
- Kadambelil Paul Thomas, Managing Director and Chief Executive Officer
Interest in promotion of the Company
Their Group Entities do not have any interest in the promotion of their Bank.
Interests of Promoter in property of their Company
Their Group Entities are not interested in the properties acquired by their Bank in the three years preceding the filing of this Draft Red Herring Prospectus or proposed to be acquired by their Bank.
ESAF Small Finance Bank IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Up to [●] Equity Shares, aggregating up to Rs.9,762.40 million |
| Of which: | |
| Fresh Issue | [●] Equity Shares, aggregating up to Rs.9,762.40 million |
| Offer for Sale | Up to [●] Equity Shares, aggregating up to Rs.1,762.40 million |
| QIB Portion | Not less than [●] Equity Shares |
| Of Which: | |
| Anchor Investor Portion | Up to [●] Equity Shares |
| Net QIB Portion | [●] Equity Shares |
| Of Which: | |
| Mutual Fund Portion | [●] Equity Shares |
| Balance for all QIBs including Mutual Funds | [●] Equity Shares |
| Non-Institutional Portion | Not more than [●] Equity Shares |
| Retail Portion | Not more than [●] Equity Shares |
| Equity Shares outstanding – prior to the Issue | 427,795,490 Equity Shares |
| Equity Shares outstanding after the Issue | [●] Equity Shares |
ESAF Small Finance Bank IPO Issue Object
These are the IPO Issue Objects of the company:
- Their Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting their Bank’s Tier – 1 capital base to meet their Bank’s future capital requirements.
- Fresh Issue will also be used towards meeting the expenses in relation to the Offer.
- Their Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.
ESAF Small Finance Bank Limited: Key Strength
- Deep understanding of the microfinance segment, which has enabled them to grow their business outside of Kerala, their home state
- Strong rural and semi-urban banking franchise
- Fast growing retail deposit portfolio with low concentration risk
- Strong customer connect driven by their customer centric products and processes and other non-financial services for microfinance customers
- Technology driven model with an advanced digital technology platform
- Experienced Board and Key Management Personnel
ESAF Small Finance Bank Limited: Business strategies
- Expand their geographic presence and penetrate deeper into their existing geographies
- Increase their deposits and in particular (NRI deposits and CASA)
- Provide a comprehensive suite of banking products catered to the needs of their diverse customer base
- Increase fee-based income by expanding their third-party product and service offerings
- Continue to leverage technology and customer data analytics
ESAF Small Finance Bank IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager, based on:
Qualitative factors
- Deep understanding of the microfinance segment, which has enabled them to grow their business outside of Kerala, their home state;
- Strong rural and semi-urban banking franchise;
- Fast growing retail deposit portfolio with low concentration risk;
- Strong customer connect driven by their customer centric products and processes and other non-financial services for microfinance customers;
- Technology driven model with an advanced information technology platform; and
- Experienced Board and Key Management Personnel.
ESAF Small Finance Bank IPO – Quantitative Factors
| Basic & Diluted EPS | RONW in % | NAV (Rs.) | |
| 31-Mar-17 | 0.07 | 0.25 | – |
| 31-Mar-18 | 0.89 | 7.86 | – |
| *31-Mar-19 | 2.37 | 10.10 | 20.89 |
- Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] to Rs.10 per Equity Share
| Particulars | P/E ratio |
| Highest | 43.38 |
| Average | 32.94 |
| Lowest | 22.29 |
ESAF Small Finance Bank : Competitive Peers
| Total Revenue (Rs. in million) | Face Value (Rs.) | P/E | EPS (Basic) (Rs.) | Return on Net Worth (%) | NAV per share (Rs.) | |
| ESAF Small Finance Bank Limited* | 11,407.89 | 10 | [●] | 2.37 | 10.10 | 20.89 |
| Listed Peers | ||||||
| Ujjivan Small Finance Bank Limited# | 20,375.74 | 10 | 43.38 | 1.20 | 11.23 | 10.53 |
| CreditAccess Grameen Limited# | 12,833.20 | 10 | 34.65 | 23.37 | 13.60 | 164.75 |
| Spandana Sphoorty Financial Limited# | 10,485.29 | 10 | 22.29 | 53.46 | 18.87 | 316.84 |
| Bandhan Bank Limited# | 77,070.99 | 10 | 31.45 | 16.36 | 35.79 | 27.12 |
ESAF Small Finance Bank IPO Lead Managers
| Lead Managers |
| Axis Capital Limited, Edelweiss Financial Services Limited, ICICI Securities Limited, IIFL Securities Limited |
ESAF Small Finance Bank IPO Registrar to Offer
| Registrar to the Offer |
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bhadur Shastri Marg Vikhroli (West), Mumbai – 400 083 Maharashtra, India Tel: +91 022 4918 6200 E-mail: esaf.ipo@linkintime.co.in Website: www.linkintime.co.in Investor Grievance ID: esaf.ipo@linkintime.co.in Contact Person: Shanti Gopalkrishnan SEBI Registration Number: INR000004058 |
Other Details:
- Statutory Auditor – S. R. Batliboi & Associates LLP, Chartered Accountants
- Legal Counsel to the Company – Cyril Amarchand Mangaldas
ESAF Bank IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
ESAF Bank IPO Grey Market Premium / GMP
The ESAF Small Finance 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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ESAF Small Finance Bank IPO News
News 1 – IPO ISSUE OPENS SOON [Download Prospectus]
News 2 – ESAF Small Finance Bank IPO [Download RHP Prospectus]
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