ESAF Small Finance Bank Ltd has filed its Draft Red Herring prospectus (DRHP) SEBI to raise ₹629.04 crore through for its initial public offering (IPO).

The bank had earlier filed its DRHP in July 2021. The IPO will include a fresh issue up to ₹486.74 crore and an offer for sale of up to ₹142.30 crore by promoter and other selling shareholders.

The offer for sale comprises of up to ₹119.26 crore by ESAF Financial Holdings Private Ltd, up to ₹12.67 crore by PNB MetLife India Insurance Company Ltd, up to ₹10.37 crore by Bajaj Allianz Life Insurance Company Ltd.

Book building

The offer is being made through the book building process, wherein not more than 50 per cent of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15 per cent of the net offer shall be available for allocation to non-institutional bidders and not less than 35 per cent of the net offer shall be available for allocation to retail individual bidders.

The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares by a private placement or any other method aggregating up to ₹97.33 crore (“PREIPO Placement”). If such placement is completed, the fresh issue size will be reduced.

As per the DRHP, the proceeds from the fresh issue will be used towards augmenting the bank’s Tier– I capital base to meet its future capital requirements.

ICICI Securities Ltd, DAM Capital Advisors Ltd and Nuvama Wealth Management Ltd are the book running lead managers and Link Intime India Private Ltd is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

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