ESAF Small Finance Bank Limited, a financial institution primarily serving unbanked and under-banked populations in rural and semi-urban areas, has launched its first initial public offering (IPO). The offering, priced between Rs 57 to Rs 60 per share, opens on Friday and concludes on Tuesday.
The bank is targeting an aggregate of Rs 463 crore from the IPO, which includes fresh equity shares worth Rs 390.70 crore and an offer for sale (OFS) of Rs 72.30 crore. The proceeds from the fresh issue are intended to enhance the bank's Tier 1 capital base.
Notably, investors are required to make a minimum investment of 250 shares in the IPO. ICICI Securities Limited, DAM Capital Advisors Limited, and Nuvama Wealth Management Limited have been enlisted to manage the book-running process.
ESAF Small Finance Bank boasts an extensive network across India with over 700 outlets, including 59 managed by business correspondents. Additionally, the bank operates 559 ATMs, and 767 customer service centers, and employs over 2,116 banking agents. It also collaborates with 525 business facilitators and 22 business correspondents. As a result of this broad infrastructure, ESAF serves more than 7.15 million customers nationwide.
The bank has a substantial presence in rural and semi-urban regions. Approximately 72% of its branches, 62.97% of its gross advances, and nearly 71.71% of its banking outlets are located in these areas. This focus aligns with ESAF's mission to bring financial services to underserved populations in these regions.
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