ESAF Small Finance Bank IPO - 7 Things to Know
by 5paisa Research Team
03 Feb 2022
Listing Details
- Listing Exchange BSE, NSE
- Listing Date 10-Nov-23
- IPO Price Range ₹57
- Listing Price ₹71.9
- Listing Change 19.8 %
- Last Traded Price ₹44.69
- Current Change -25.5 %
ESAF IPO Details
- Open Date 03-Nov-23
- Close Date 07-Nov-23
- Lot Size 250
- IPO Size ₹ 463.00 Cr
- IPO Price Range ₹ 57 to ₹ 60
- Min Investment ₹ 14,250
- Listing Exchange BSE, NSE
- Basis of Allotment 10-Nov-23
- Refunds 13-Nov-23
- Credit to Demat Account 15-Nov-23
- Listing Date 16-Nov-23
ESAF Small Finance Bank IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 03-Nov-23 | 0.95 | 2.58 | 2.12 | 1.85 |
| 06-Nov-23 | 1.09 | 21.26 | 8.36 | 8.78 |
| 07-Nov-23 | 182.66 | 88.81 | 17.86 | 77.00 |
ESAF IPO Synopsis
ESAF Small Finance Bank Limited IPO is all set to open from 3rd November to 7th November 2023. The company is a small finance bank catering to unserved and underserved customers. The IPO includes a fresh issue worth ₹390.70 cr. and an Offer for Sale (OFS) worth ₹72.30 cr. The total IPO size is ₹463 cr. The share allotment date is 10th November, and the IPO will be listed on 16th November on the stock exchanges. The price band is ₹57 to ₹60 per share and the lot size is 250 shares.
ICICI Securities Limited, DAM Capital Advisors Limited, and Nuvama Wealth Management Limited are the book-running lead managers for this IPO, while Link Intime India Private Limited is the registrar.
Objectives of ESAF Small Finance Bank IPO:
● To meet the capital requirements by augmenting the Tier-I capital base
● To fund the growth of lending activities expected to arise from the growth in the Bank’s assets, primarily loans
● To comply with regulatory requirements on capital adequacy prescribed by the RBI
● General corporate purposes.
ESAF Small Finance Bank IPO Video:
About ESAF Small Finance Bank
Established in 1992, ESAF Small Finance Bank Limited provides banking and lending facilities to unbanked and underbanked customer segments, particularly in rural and semi-urban areas. As of June 30, 2023, the company's loans to customers in rural and semi-urban areas combined accounted for 62.97% of its total loan portfolio. Also, 71.71% of its banking branches are also located strategically in these areas.
ESAF’s primary product offerings include:
i. Micro Loans: Microfinance Loans and Other Micro Loans
ii. Retail Loans: Gold loans, mortgages, personal loans, and vehicle loans
iii. MSME Loans
iv. Loans to financial institutions
v. Agricultural Loans
ESAF Small Finance Bank has a network of 700 banking outlets, which includes 59 business correspondent-operated banking outlets, and 767 customer service centers. Additionally, this extensive network is dedicated to serving a customer base of 7.15 million individuals as of June 30, 2023.
The company's operations span across India with a focus on South India, specifically in the states of Kerala and Tamil Nadu.
Peer Comparison:
● Bandhan Bank Limited
● Equitas Small Finance Bank Limited
● Ujjivan Small Finance Bank Limited
● Suryoday Small Finance Bank Limited
● CreditAccess Grameen Limited
● Spandana Sphoorty Financial Limited
For More Information:
Webstory on ESAF Small Finance Bank IPO
ESAF Small Finance Bank IPO GMP
ESAF Small Finance Bank Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations (interest income) | 2853.65 | 1939.92 | 1641.17 |
| EBITDA | 627.43 | 220.56 | 284.96 |
| PAT | 302.33 | 54.73 | 105.39 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Total Assets | 20223.65 | 17707.56 | 12338.65 |
| Share Capital | 449.47 | 449.47 | 449.47 |
| Total Borrowings | 3843.02 | 3480.89 | 1987.16 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | -573.00 | -584.50 | 1127.44 |
| Net cash from / (used in) investing activities | -573.21 | -981.84 | -637.95 |
| Net cash flow from / (used in) financing activities | 401.36 | 1258.83 | 653.27 |
| Net increase (decrease) in cash and cash equivalents | -744.85 | -307.51 | 1142.76 |
ESAF IPO Key Points
-
Strengths
1. The company has a great understanding of the microloan segment which has enabled it to grow the business.
2. The main focus is on the rural and semi-urban banking franchises.
3. It has a Growing Retail Deposits portfolio.
4. Customer connections driven by customer-centric products and processes and other non-financial services for Micro Loan customers.
5. The company has a technology-driven model with a digital technology platform. -
Risks
1. The company is significantly dependent on the microloan segment, and thus any decrease in demand could adversely affect its financial condition, results of operations and cash flows.
2. The numbers for unsecured advances are high and any failure to recover them can impact the business.
3. Subject to various sanctions and penalties by the Reserve Bank of India (RBI).
4. The business is concentrated in Kerala and Tamil Nadu.
5. The business faces challenges such as the high cost of reaching customers, potential customers’ lack of financial and product awareness and vulnerability of household income to local developments.
6. The company does not have much presence in Bihar, Uttar Pradesh, West Bengal, Odisha or Rajasthan, which are top locations for microfinancing.
7. Non-performing advances (NPAs) can be a burden for the company.
ESAF
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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ESAF IPO FAQs
What is the minimum lot size and investment required for the ESAF Small Finance Bank IPO?
The minimum lot size of ESAF Small Finance Bank IPO is 250 shares and the investment required is ₹14,250.
What is the price band of ESAF Small Finance Bank IPO?
The price band of ESAF Small Finance Bank IPO is ₹57 to ₹60.
When does the ESAF Small Finance Bank IPO opens and closes?
ESAF Small Finance Bank is open from 3rd November to 7th November 2023.
What is the size of the ESAF Small Finance Bank IPO?
The size of ESAF Small Finance Bank IPO is ₹463 cr.
What is the allotment date of the ESAF Small Finance Bank IPO?
The share allotment date is ESAF Small Finance Bank IPO is 10th of November 2023.
What is the ESAF Small Finance Bank IPO listing date?
The ESAF Small Finance Bank IPO will be listed on the 16th of November 2023.
Who are the book runners for the ESAF Small Finance Bank IPO?
ICICI Securities Limited, DAM Capital Advisors Limited, and Nuvama Wealth Management Limited are the book-running lead managers for ESAF Small Finance Bank IPO.
What is the objective of ESAF Small Finance Bank IPO?
ESAF Small Finance Bank would use the proceeds from the IPO to:
1. To meet the capital requirements by augmenting the Tier-I capital base.
2. To fund the growth of lending activities expected to arise from the growth in the Bank’s assets, primarily loans.
3. To comply with regulatory requirements on capital adequacy prescribed by the RBI.
4. General corporate purposes.
How to apply for the ESAF Small Finance Bank IPO?
To apply for ESAF Small Finance Bank IPO, follow the steps given below:
● Login to your 5paisa account and select the issue in the current IPO section
● Enter the number of lots and the price at which you wish to apply for the ESAF Small Finance Bank IPO.
● Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.
● You will receive a mandate notification to block funds in your UPI app.
Contact Details of ESAF Small Finance Bank IPO
Contact Information
ESAF Small Finance Bank Limited
Building No. VII/83/8,
ESAF Bhavan, Thrissur-Palakkad National Highway,
Mannuthy, Thrissur 680 651
Phone: +91 487 7123 907
Email: investor.relations@esafbank.com
Website: https://www.esafbank.com/
ESAF Small Finance Bank IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: esaf.ipo@damcapital.in
Website: https://linkintime.co.in/mipo/ipoallotment.html
ESAF Small Finance Bank IPO Lead Manager
ICICI Securities Limited
Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd)
Nuvama Wealth Management Limited
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