ESAF Small Finance Bank is poised to conclude the allocation of its equity shares on the 8th of November. Successful bidders, fortunate enough to secure an allocation, will shortly commence the reception of notifications and messages pertaining to the debit or rescission of the mandate, occurring in the late hours of Wednesday or the early hours of Thursday.
The bank’s initial public offering (IPO) garnered significant interest from discerning investors. For those desiring to inquire about the status of their allocation on the BSE, investors who partook in the ESAF Small Finance Bank IPO can scrutinize their allotment status through the IPO application verification page on the BSE website. Simply opt for “ESAF Small Finance Bank Limited” from the drop-down menu under the category of the issue, enter the application number, and supply the PAN card number. Conclude the “I am not a Robot” authentication before triggering the submission.
Alternatively, for those seeking to ascertain their allotment status through Link Intime India, the esteemed registrar to the issue, you may choose the “ESAF Small Finance Bank” IPO from the drop-down menu. Subsequently, input your PAN card number and initiate the “search” command to procure the details regarding the allotment status pertaining to your application.
Permit me to elucidate further on the particulars of the ESAF Small Finance Bank IPO. This esteemed financial institution, hailing from the picturesque state of Kerala, launched its IPO, bearing a price bracket between Rs 57 and Rs 60 per share, accompanied by a lot size of 250 shares. The offering remained open for subscription from the 3rd of November to the 7th of November. The bank’s objective was to raise an aggregate sum of Rs 463 crore through the IPO, encompassing a fresh issue of Rs 390.70 crore and an offer-for-sale (OFS) comprising up to 6.51 crore equity shares. The IPO attracted robust demand, with an overall subscription rate of 73.15 times during the arduous three-day bidding process.
The segment reserved for qualified institutional bidders (QIB) experienced a substantial oversubscription of 173.52 times, while non-institutional investors exhibited a keen interest with a subscription rate of 84.37 times. The proportion earmarked for retail investors and employees also garnered hearty subscription rates, amounting to 16.97 times and 4.36 times, respectively.
Remarkably, the grey market premium (GMP) associated with ESAF Small Finance Bank has surged significantly, bearing testimony to the fervent investor interest across all categories. As per the most recent data, the bank commands a premium of Rs 21 per share in the unofficial market, hinting at a potential listing gain of approximately 35 percent for investors. This is a substantial ascent from the single-digit premium observed at the IPO’s inception.
ESAF Small Finance Bank specializes in the provision of loans to customers residing in rural and semi-urban areas, offering an extensive array of financial solutions encompassing microloans, retail loans, MSME loans, loans to financial institutions, and agricultural loans. As of the fiscal year 2023, the bank boasts a network of 700 outlets, 743 customer service centers, 20 business correspondents, 481 business facilitators, and 581 ATMs, strategically dispersed across 21 states within the Indian subcontinent.
Prominent brokerage firms have expressed a favorable outlook on the ESAF Small Finance Bank IPO, underscoring the institution’s robust fundamentals, burgeoning business, attractive valuations, and firmly established presence in the Southern Indian markets as the chief catalysts for optimism. ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management serve as the lead managers for the ESAF SFB IPO, with Link Intime India fulfilling the role of registrar to the issue. The bank’s shares are poised for listing on both the BSE and NSE, scheduled for the 10th of November in the year 2023.