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Business News/ Markets / Ipo/  ESAF Small Finance Bank IPO bidding ends today: Check GMP, subscription status and brokerage reviews
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ESAF Small Finance Bank IPO bidding ends today: Check GMP, subscription status and brokerage reviews

ESAF Small Finance Bank IPO price band set at ₹57 to ₹60 per equity share. Lot size is 250 equity shares.

ESAF Small Finance Bank IPO opened for subscription on Friday, November 3, and will close today (Tuesday, November 7). (Equitypandit)Premium
ESAF Small Finance Bank IPO opened for subscription on Friday, November 3, and will close today (Tuesday, November 7). (Equitypandit)

ESAF Small Finance Bank IPO opened for subscription on Friday, November 3, and will close today (Tuesday, November 7). The initial two days of the ESAF Small Finance Bank IPO had an extremely positive response, with an over subscription. It appears that the third and final day of bidding will follow the same pattern, with the issue being completely booked 11.84 times at 10:57 IST.

On day 2, ESAF Small Finance Bank IPO has been subscribed 8.32 times, and ESAF IPO was subscribed 1.74 times on day 1.

ESAF Small Finance Bank IPO price band has been fixed in the range of 57 to 60 per equity share of face value of 10. ESAF Small Finance Bank lot size is 250 equity shares and in multiples of 250 equity shares thereafter.

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ESAF Small IPO subscription status on day 3

On day 3, ESAF Small Finance Bank IPO was subscribed 73.15 times. ESAF Small Finance Bank IPO retail investors portion was subscribed 16.97 times, NII portion was subscribed 84.37 times, and Qualified Institutional Buyers (QIB) portion was booked 173.52 times, and employee portion was subscribed 4.36 times, according to data available at BSE.

ESAF Small Finance Bank IPO has received bids for 4,22,30,07,500 shares against 5,77,28,408 shares on offer, according to data from the BSE.

ESAF Small Finance Bank IPO details

ESAF Bank IPO comprises a fresh issuance of equity shares worth 390.7 crore by the company, and an offer-for-sale (OFS) of equity shares worth 72.3 crore by three shareholders. The company plans to raise 463 crore from the IPO.

In the OFS, promoter ESAF Financial Holdings will sell shares worth 49.26 crore, while PNB MetLife India Insurance Company and Bajaj Allianz Life Insurance Company will offload shares worth 23.04 crore.

The bank proposes to utilise the net proceeds from the fresh issue to augment its Tier – I capital base to meet the future capital requirements.

The book-running lead managers for ESAF Small Finance Bank IPO are ICICI Securities, DAM Capital Advisors and Nuvama Wealth Management, while Link Intime India is the IPO registrar.

Also Read: ESAF Small Finance Bank IPO raises 135 crore from anchor investors; check details

ESAF Small Finance Bank IPO dates

Tentative ESAF Small Finance Bank listing date is scheduled for Thursday, November 16. ESAF Small Finance Bank IPO allotment date has been fixed for Friday, November 10. If the company switches to T+3 norms then the dates will change accordingly.

Also Read: ESAF Small Finance Bank IPO: GMP, subscription status on day 2, review, other details. Should you subscribe?

ESAF Small Finance Bank IPO GMP today

ESAF Small Finance Bank IPO GMP today or grey market premium is +19, similar to the previous session. This indicates ESAF Small Finance Bank share price were trading at a premium of 19 in the grey market on Tuesday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ESAF Small Finance Bank share price was indicated at 79 apiece, which is 31.67% higher than the IPO price of 60.

On last 16 sessions grey market activities, today IPO GMP trending upward and expects a strong listing. The lowest GMP is 0, while the highest GMP is 22, according to investorgain.com analysts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

ESAF Small Finance Bank IPO Review

Choice Equity Broking Pvt Ltd 

"ESFB is a small finance bank primarily specialising in microfinance loans, serving the southern part of the country. The bank has strategically planned to diversify its asset portfolio and increase the proportion of retail deposits in various regions, with a particular focus on opportunities in the northern states.

At a higher price band of Rs. 60, ESFB’s issue is priced at a P/BV of 1.38x on post issue Adj. BVPS which is available at discount to its peer’s average P/BV of 2.3x. Going forward, we expect ESFB’s loan growth to remain strong, leading to an increase in the bank’s profitability across all parameters and thus, we assign a “SUBSCRIBE" rating for the issue," the brokerage said in its report. 

Swastika Investmart Ltd

According to the brokerage's analysis, ESAF Small Finance Bank is a significant player in the microloan market, mostly serving rural communities. The business is well-established in southern India. Moreover, its portfolio of retail deposits is expanding. Examining its finances reveals that the business has experienced significant growth in both its top and bottom lines. Nonetheless, there are several issues, such as the industry's strong competitiveness and geographic concentration.

“The issue is coming at a P/BV of 1.5x, which seems fairly priced. Thus, considering this valuation and its better performance in terms of its CIR, NNPA, and NIM, we will give a subscribe rating to this IPO," the brokerage said. 

Also Read: ESAF Small Finance Bank IPO opens today: GMP, issue details, review, here are 10 key things to know

SBI Securities 

The issue is coming at a P/BV of 1.5x, which seems fairly priced. Thus, considering this valuation and its better performance in terms of its CIR, NNPA, and NIM, we will give a subscribe rating to this IPO," the brokerage said.

Hem Securities 

As to the brokerage, the company is offering the shares at a price range of 57-60, with a price-to-book multiple of 1.4x based on the fiscal year 2023. The company's expansion beyond its home state of Kerala has been made possible by its understanding of the microloan market. In addition to expanding its retail deposit portfolio and client relationships through customer-centric products and procedures, the company's primary focus is on rural and semi-urban banking franchises. It also offers additional non-financial services to Micro Loan customers.

“Looking after all above,we recommend “Long Term Subscribe" on issue," the brokerage said. 

Also Read: ESAF Small Finance Bank IPO: GMP, subscription status on day 2, review, other details. Should you subscribe?

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 Nov 2023, 11:05 AM IST
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