After a couple of stellar primary market listings, Equitas Small Finance Bank has hit the primary market this week. With a price band of Rs 32-33 per share, the bank intends to raise up to Rs 518 crore to augment its Tier-I capital base. Equitas SFB had earlier planned to raise Rs 1,000 crore through the issue. The current book-building IPO will include fresh issue of shares aggregating up to Rs 280 crore and an offer for sale ( OFS ) of 72 million shares aggregating up to Rs 237.6 crore. Considering the lower return ratios and less provision coverage, analysts are advising long-term retail investors to stay away from the issue and wait for fair price discovery post listing. Even the grey market is signalling a cautious approach on the issue. The premium on the SFB’s unlisted shares in the unofficial market declined to near zero, as the issue opened for subscription on Tuesday. Equitas Small Finance Bank has two comparable peers: Ujjivan Smal...
Pre IPO | Private Equity | Unlisted Shares