ESAF Small Finance Bank on Monday filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise Rs 997.78 crore by way of an initial public supplying (IPO).
The Kerala-based bank will use net proceeds to augment the its Tier 1 capital (mostly loans, advances and investment portfolio) to meet future capital needs.
According to the DRHP, the aggregate concern size is up to Rs 997.78 crore, comprising a fresh concern element of up to Rs 800 crore and an present for sale of up to Rs 197.78 crore by promoter and other shareholders PNB Metlife India Insurance Company, Bajaj Allianz Life Insurance, PI Ventures LLP and John Chakola.
The corporation may perhaps think about a pre-IPO placement of up to Rs 300 crore topic to counsel from lead managers.
Investment bankers appointed to the concern are Axis Capital, Edelweiss Financial Services, ICICI Securities and IIFL Securities.
The little finance bank was launched in March 2017 and inside two years of its operations it became a scheduled bank in December 2018. About 85% of the total advances of the lender are micro loans with the typical ticket size getting Rs 20,000.