ESAF Small Finance Bank IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP

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.Stock Broker Complaints


ESAF Small Finance 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 ESAF Small Finance Bank IPO

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 / DateNIIRIITotal 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-1930-Sep-1831-Mar-19Mar-1831-Mar-17
Total Assets85,545.6262,425.8470,584.1347,253.8829,377.15
Total Revenue7,288.755,329.2911,407.896,986.99482.10
Total Expense6,364.355,088.6910,505.056,717.05474.47
Profit After Tax1,804.36448.771,111.01275.667.63

Earnings per Equity Share (in Million)

Amount (in INR & Million)
30-Sep-1930-Sep-18Mar-1931-Mar-1831-Mar-17
Basic & Diluted2.160.722.370.890.07

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 SaleUp to [●] Equity Shares, aggregating up to Rs.1,762.40 million
QIB PortionNot less than [●] Equity Shares
Of Which:
Anchor Investor PortionUp 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 PortionNot more than [●] Equity Shares
Retail PortionNot more than [●] Equity Shares
 Equity Shares outstanding – prior to the Issue427,795,490 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 EPSRONW in %NAV (Rs.)
31-Mar-170.070.25
31-Mar-180.897.86
*31-Mar-192.3710.1020.89
  • Price to Earnings (P/E) ratio in relation to Price band of Rs.[●] to Rs.10 per Equity Share
ParticularsP/E ratio
Highest43.38
Average32.94
Lowest22.29

ESAF Small Finance Bank : Competitive Peers

Total Revenue (Rs. in million)Face Value (Rs.)P/EEPS (Basic) (Rs.)Return on Net Worth (%)NAV per share (Rs.)
ESAF Small Finance Bank Limited*11,407.8910[●]2.3710.1020.89
Listed Peers
Ujjivan Small Finance Bank Limited#20,375.741043.381.2011.2310.53
CreditAccess Grameen Limited#12,833.201034.6523.3713.60164.75
Spandana Sphoorty Financial Limited#10,485.291022.2953.4618.87316.84
Bandhan Bank Limited#77,070.991031.4516.3635.7927.12

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 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

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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