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ESAF Small Finance Bank’s initial public offering (IPO), valued at ₹463 crore ($62.4 million), has entered its second day, following a robust first day that saw a subscription rate of 1.74 times. The IPO is priced at ₹57-60 per share and includes ₹390.7 crore ($52.6 million) worth of new shares and an offer-for-sale of ₹72.3 crore ($9.7 million) shares from ESAF Financial Holding, PNB Metlife (NYSE:), and Bajaj Allianz (ETR:).
The bank has seen varied interest across different investor categories. The employee quota has been subscribed 1.01 times, high net worth individuals (HNIs) have subscribed 2.44 times, and qualified institutional buyers (QIBs) have subscribed at a rate of 0.90 times. Retail investors have been allocated a quota of 35%.
Investors are permitted to bid for a minimum of 250 shares in the IPO. On the first day, ESAF Small Finance Bank raised ₹135.15 crore ($18.2 million) from anchor investors including ACM Global Fund VCC, Founders Collective Fund, BNP Paribas (OTC:) Arbitrage, and ICICI Prudential Life Insurance, with each share priced at ₹60.
The net proceeds from the IPO will be used to strengthen the bank’s Tier–I capital base and for onward lending purposes. The IPO is being managed by ICICI Securities and Dam Capital Advisors, while Link Intime India serves as the registrar.
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