By 5.30 pm, the IPO had received bids for 7.7 crore shares compared with the issue size of 11.58 crore shares. Bidding was seen by retail individual investors (RIIs), whose quota was subscribed 1.4 times at the time of writing this report.
The offer included a fresh issue of shares worth Rs 280 crore and an offer for sale of 7,20,00,000 shares by the parent company. The Equitas SFB IPO is being sold in the price band of Rs 32-33 per share and at the upper limit of this price band, the IPO is asking for an adjusted price to book value P/BV of 1.26 times, post considering fresh issue.
Equitas Small Finance Bank IPO: All you need to know
The Rs 500 crore IPO by Equitas Small Finance Bank (ESFB) will open for subscription on Tuesday. Here's all you must know about the issue before subscribing:
ICICI Securities said the company had strong advances growth along with maintaining asset quality. “Unserved and underserved customers as targets offer a vast opportunity for business growth. We have a ‘Subscribe’ recommendation on the stock,” said the broker.
Some analysts, however, believe you should skip the issue if you are looking for listing gains.
Quantum Securities noted that the SME/MFI businesses are facing various challenges at operating level in wake of the current pandemic and the interest waiver issue for which a PIL (public interest litigation) has been filed in the Supreme Court (SC). It, thus, ruled out listing gains.
“So based on expectation of improvement in performance from FY22E onwards, we recommend investors to ‘Subscribe’ to the issue from a long term perspective,” Quantum said in a note.
Emkay Global Financial Services recommended investors to subscribe to the IPO. The brokerage said it has a 'buy' rating on the holding company Equitas Holdings Ltd with target price of Rs 64 for its superior asset diversification, reasonable liability profile, better management pedigree, healthy return ratios and reasonable valuations.
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