Equitas Holdings' Rs 2,200 crore-IPO subscribed 9% on first day
With this initial public offering (IPO), the company's foreign shareholding will come down from the present 93% to 35%.
The IPO of Equitas Holdings, the first initial public offering in the current fiscal, was subscribed 9% in the first day of the offer on Tuesday.
The Rs 2,200 crore-IPO, received bids for 1,21,44,600 shares, as against the total issue size of 13,91,91,802 shares, according to data available with the NSE till 1700 hours. Retail investors portion was subscribed 17%.
Equitas has raised Rs 652 crore from anchor investors.
Equitas Holdings, with a licence for a small finance bank, has fixed the price band at Rs 109-110 per share. The initial share sale programme will close on April 7.
Equitas' IPO comprises of fresh issue of shares aggregating Rs 720 crore and an offer for sale of up to 132,425,884 equity shares by existing shareholders, including P N Vasudevan, MD, and private equity stakeholders.
The IPO will bring down the company's foreign holding from the present 93% to 35%.
As per the norms, the foreign shareholding should be below 49% for operating as a small finance bank.
Funds generated from the fresh issue will be used to develop IT infrastructure for the new bank, for lending purposes, among others.
Axis Capital, ICICI Securities, HSBC and Edelweiss Financial Services are managing the company's IPO.