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ESAF Small Finance Bank has announced the completion of private placement of its common stock worth ₹464 crore.
ICICI Securities served as the advisor for the private placement. Polymath Advisors, Mumbai, was also associated with ESAF SFB in these transactions. PNB MetLife India Insurance and ESAF Multi-State Co-operative have taken stakes of 4.99 per cent each. Bajaj Allianz Life Insurance and ICICI Lombard General Insurance have taken stakes of 4.08 per cent and 1.45 per cent, respectively. Seven other investors have also taken stakes in ESAF Small Finance Bank.
With the infusion of additional capital, the net worth of the bank has increased to ₹807 crore and the CRAR to 27.9 per cent.
“We are extremely pleased with the success of this transaction and the confidence expressed in our continued growth and profitability,” said K Paul Thomas, Managing Director and CEO, ESAF Small Finance Bank. The proceeds from the private placement will be used for general corporate purposes, capital management, and to support future growth, he added.
ESAF has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking outlets, spread across 11 States. With 20 lakh borrowers, the bank has accumulated ₹440 crore in loans and advances.
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