ESAF Small Finance Bank Ltd, a Thrissur-based institution serving under-banked populations in India, has received approval from the Securities and Exchange Board of India (SEBI) for its third Initial Public Offering (IPO) attempt on Wednesday. The bank had previously attempted a larger IPO involving ₹976 crore on Tuesday.
The current IPO includes a fresh issue of up to ₹486.74 crore (INR100 crore = approx. USD12 million) and an offer for sale of up to ₹142.30 crore from promoters and shareholders, including ESAF Financial Holdings Pvt Ltd, PNB MetLife (NYSE:MET) India Insurance Company Ltd, and Bajaj Allianz (ETR:ALVG) Life Insurance Company Ltd. An additional equity share issue worth ₹97.33 crore may be considered by ESAF as part of a pre-IPO placement.
The funds raised will bolster the bank's Tier–I capital base, supporting future expansion plans. ESAF Small Finance Bank, which boasts a customer base of 6.83 million, operates an extensive network of banking facilities across India.
The IPO process is being managed by ICICI Securities Limited, DAM Capital Advisors Limited, Nuvama Wealth Management Limited, and Link Intime India Private Limited. The equity shares from the IPO are planned to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
In 2006, Kadambelil Paul Thomas and his team acquired the bank's Corporate Promoter, marking a significant event in the bank's 27-year history.
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