Shares of Equitas Small Finance Bank Limited (ESFB) listed on the bouses and had a struggling listing. The company had tapped the capital markets with its fresh issue of Rs 280 crs and an offer for sale of 7.2 cr shares in a price band of Rs 32-33.
The discovered price was Rs 31 on BSE and Rs 31.10 on NSE with 5.37 lac shares changing hands at the pre-open. The high of the day was Rs 33.05 on BSE and Rs 33.15 on NSE. The lows were Rs 30.10 and Rs 30.05 on the two exchanges. The close was Rs 32.75, a loss of Rs 0.25 or 0.76% while it was Rs 32.80, a loss of Rs 0.20 or 0.61% on NSE. The traded volume was 268.20 lacs on the two exchanges combined. It was 17% of the issue size of 1568.48 lacs and 23% of the non-anchor book of 1145.21 lac shares. Delivery volume was 88.88 lac shares which was 33.14% of the traded volume. It was 5.67% of the issue size and 7.76% of the non-anchor book. Weighted average of the days trade was Rs 31.68 on BSE and Rs 31.67 on NSE.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 31.00 | 33.05 | 30.10 | 32.75 | -0.25 | -0.76 | 31.68 | 3721057 | 1343547 | 36.11 |
| NSE | 31.10 | 33.15 | 30.05 | 32.80 | -0.20 | -0.61 | 31.67 | 23099679 | 7544863 | 32.66 |
| Total | 26820736 | 8888410 | 33.14 |
The company had earlier allotted 4,23,27,271 equity shares to 14 anchor investors comprising of 35 entities. The highest allocation was an identical 37,87,650 equity shares or 8.95% of the allocation to 8 entities. These included names such as ICICI Prudential, ICICI Prudential Life Insurance, SBI Life Insurance, Franklin India and Mirae Asset Management. The issue saw QIB portion subscribed 3.91 times, HNI portion remained undersubscribed at 0.22 times, Retail portion was subscribed 2.08 times. The shareholder reservation quota was undersubscribed at 0.42 times. Employee quota was subscribed 1.84 times.
The issue just about scraped through and the response was overall poor and lacklustre. The retail category which saw about 1.69 lac applications was on the hope and expectation that there would be some listing gains on day one.
All in all, the listing day saw the share manage to hold on around its issue price. The fact that there is no undue pressure of the leveraged HNI who has losses on account of interest cost, the share would consolidate at or around the issue price. The share would move in a broad range of Rs 31-34 in the near term and the issue size needs to get absorbed.
There is a hangover on account of dilution which needs to be done in the next three years from the current 80-81% to 40%. How and when this would happen would be the discussion and clues that the market would look for. Nothing of any great significance in the share likely to happen in the near term.
