Fincare Small Finance Bank has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering.

The IPO will include capital raise through a fresh issue of shares of up to Rs 625 crore, and offer-for-sale of up to 1.7 crore shares by the promoters and existing shareholders.

The proceeds from the fresh issue will be used to augment its tier-I capital base.

The offer-for-sale comprises sale of up to 1.5 crore shares by the promoter, Fincare Business Services, 4.7 lakh shares by Wagner Ltd, 4.4 lakh shares by True North Fund V LLP, 4.3 lakh shares by Indium IV (Mauritius) Holdings, 2.2 lakh shares by Omega TC Holdings PTE, and 1.3 lakh shares by Leapfrog Rural Inclusion (India).

Also read: Fincare SFB expects growth rates to bounce back to pre-Covid levels by end of FY23

Institutional sales include the sale of up to 1.3 lakh shares by Kotak Mahindra Life Insurance, 1.2 lakh shares by Edelweiss Tokio Life Insurance; 45,710 shares by Bharti AXA Life Insurance, 35,092 shares by Silver Leaf Oak (Mauritius), 20,572 shares by Tata Capital Financial Services, and 19,237 shares by Zuno General Insurance (formerly Edelweiss General Insurance).

ICICI Securities, Axis Capital, IIFL Securities, SBI Capital Markets and Ambit Private are the book-running lead managers to the issue.

Fincare Small Finance Bank is a ‘digital-first’ lender with a focus on unbanked and under-banked customer segments, especially in rural and semi-urban areas. Its business model of financial inclusion aims to offer affordable financial products and services to individuals and businesses by leveraging technology and last-mile distribution. The entity has over 15 years of experience in providing microloans.

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