Equitas to raise Rs 2,176 cr through IPO

Equitas to raise Rs 2,176 cr through IPO

Chennai-based Equitas Holdings is planning to raise up to Rs 2,176 crore through an initial public offering (IPO). The issue includes a fresh issue aggregating up to Rs 720 crore and an offer for sale of up to 1.64 crore shares.

Equitas, which has received in-principle approval from the RBI to set up a small finance bank, has fixed a price band of Rs 109 to Rs 110 per share for its IPO which opens on April 5 and closes on April 7. Axis Capital, Edelweiss Financial Services, HSBC Securities and Capital Markets and ICICI Securities are the book running lead managers to the issue.

“We have to reduce foreign holding in the company to 49% from 93% currently to set up the small finance bank. We have time till April 2017 to commence operations,” Equitas Holdings MD PN Vasudevan said.

Funding will be one of the challenges once we become a small finance bank but we will be relying on retail and wholesale deposits, besides corporate deposits and commercial papers for funding going forward, Vasudevan added.

The shares offered through the issue are proposed to be listed on BSE and National Stock Exchange of India (NSE). BSE shall be the designated stock exchange.

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)