ESAF Small Finance Bank has refiled preliminary papers with capital markets regulator Sebi to raise Rs 629 crore through an initial public offering (IPO).
The lender has cut down the issue size, which now comprises fresh issue equity shares aggregating to Rs 486.74 crore and an offer for sale (OFS) of Rs 142.3 crore, according to the draft red herring prospectus (DRHP) available with Sebi on Monday.
Those selling shares in the OFS are promoter — ESAF Financial Holdings Private Ltd and other shareholders — PNB MetLife India Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd.
At present, ESAF Financial Holdings owns a 62.46 per cent stake in the small finance bank, while PNB MetLife and Bajaj Allianz Life owns 4.75 per cent and 3.89 per cent stake in the lender, respectively.
Proceed of the fresh issue will be utilised to augment the bank’s Tier 1 capital base.
The fresh filling came after ESAF Small Finance Bank’s managing director and chief executive K Paul Thomas in November 2022 stated that the lender is looking to refile its IPO with a lower issue size, which will hit the market in FY24.
The lender had in October 2021 filed for a Rs 998 crore IPO which was to include Rs 800 crore of primary issuance and also an OFS of Rs 198 crore from existing investors. However, the same lapsed as it was to be done within a year.
