India's ESAF Small Finance Bank, based in Thrissur, has announced the price band for its upcoming initial public offering (IPO). The bank, which is transitioning from a microfinance institution, has set the IPO price band at ₹57-₹60 per share. The offering, which is expected to debut on Thursday, will raise ₹463 crore ($6.2 million).
The bank plans to issue fresh shares worth ₹390.1 crore ($5.2 million) through the IPO. Additionally, ESAF Financial Holdings, PNB Metlife (NYSE:MET) India Insurance Company, and Bajaj Allianz (ETR:ALVG) Life Insurance Company will reduce their holdings by ₹72.3 crore ($970,000).
K Paul Thomas, the managing director of ESAF Small Finance Bank, emphasized that the IPO is crucial for regulatory compliance and is set to conclude on Monday, November 7. The bank's draft IPO papers were refiled and received approval from the Securities & Exchange Board of India earlier this month.
As of the end of June, ESAF Small Finance Bank managed assets worth ₹17,204 crore ($2.3 billion), with three-fourths of this amount contributed by microfinance operations. In fiscal years 2022 and 2023, the bank wrote off ₹465 crore ($6.2 million) of bad loans, reducing its gross and net non-performing assets (NPA) to 1.65% and 0.81%, respectively as of March 30, 2022.
The bank reported deposits totaling ₹1,656 crore ($222 million), with a net interest margin of 9.7%.
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