Equitas plans to launch its Rs 2000 crores IPO in April
Mayuresh Deshmukh / 22 Mar 2016
Small finance bank licence holder Equitas Holdings is expected to hit the capital markets in the first half of April to raise an estimated Rs. 2,000 crore through an initial public offering (IPO).
Small finance bank licence holder Equitas Holdings is expected to hit the capital markets in the first half of April to raise an estimated Rs. 2,000 crore through an initial public offering (IPO). This could be the first small finance bank licence holder to list on the stock exchanges.
Equitas, in September 2015, had received in-principle approval from the Reserve Bank to set up small finance banks to provide basic banking services to small farmers and micro industries. After that it had filed its draft red-herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in October last year, had obtained clearance from the capital markets regulator in January.
According to the draft papers, Equitas’ public offer comprises fresh issue of shares worth Rs. 600 crore and an offer for sale by existing shareholders, including Sequoia Capital, WestBridge, Aavishkaar, Helion Capital and International Finance Corporation (IFC). Axis Capital, ICICI Securities, HSBC and Edelweiss Financial Services are managing the company’s IPO.
On financial front, the total income in fiscal 2013, 2014 and 2015 and in the three months ended June 30, 2015 was Rs 283 crores, Rs 483 crores, Rs 755 crores and Rs 239 crores respectively, while Interest Income, which represents interest from loans to customers and the interest spread on securitization/ assignment of receivables, was Rs 254 crores, Rs 435 crores, Rs 686 crores and Rs 215 crores respectively. Our profit after tax in fiscal 2013, 2014 and 2015 and in the three months ended June 30, 2015 was Rs 32 crores, Rs 74 crores, Rs 106 crores and Rs 37 crores respectively.
Another microfinance lender, Ujjivan Financial Services received SEBI’s clearance last month to mop up funds through an initial share sale programme.
This year HealthCare Global, Quick Heal Technologies, TeamLease Services and Precision Camshafts have already raised funds through IPOs, Infibeam hit Dalal Street for IPO issuance, Bharat Wire Ropes launched its initial share sale plan on March 18.
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