The bank filed the preliminary papers with the Securities Exchange Board of India to launch IPO.
The offering includes a fresh issue of equity shares of amount Rs 700 crore. Also, it includes an offer for sale by the present shareholder for 92, 53,659 shares. The Red draft herring mentioned these details of the issuance.
The amount generated from the issue amounts to Rs 1,100 crore.
The objective of raising the fund is to employ in increasing the Tier 1capital base. This includes disclosed reserves and equity capital. Besides, the funds will ensure the fulfillment of the capital needs.
Additionally, the company may sell a huge amount of shares before the listing at a discount to the purchaser. The amount of the pre-IPO placement is a maximum of Rs 500 crore. Also, the company may issue additional shares to its promoters worth up to Rs 400 crore.
Furthermore, if the company decides to raise funds through an early sale or pre-IPO placement the fresh issue amount reduces. That is, the money raised from the pre-IPO reduces from the issued amount.
Moreover, in case of considering the pre-IPO, the process to file a draft red herring prospectus with RoC happens afterward.
For issuance, the merchant banks are Axis Capital, ICICI Securities, and SBI Capital Markets.
The bank offers services like gold loans, loans to MSME, two-wheeler loans, etc. Further, it provides services like zero balance savings accounts, fixed deposits, housing loan schemes to underbanked individuals. These are the customer of the bank who involve in other financial services.
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