The simultaneous issue from Equitas Holdings Limited which includes a fresh issue of Rs 720 crs and a secondary offer of approximately Rs 1,455 crs in a price band of Rs 109-110 offers investors an opportunity to trade in the share post listing. The company has been given in principle approval to convert itself into a small finance bank and this IPO is in that connection.
The company has broadly three verticals which include micro-finance, vehicle finance and home loan. 53% of the assets under management are in the microfinance sector where it is one of the top ten players in the country. Almost half of its total business comes from Tamil Nadu which is its home state. The total assets under management are Rs 5,500 crs.
The FII holding is being reduced from 93% pre-IPO to 35% post IPO and FII’s and NRI’s are not permitted to invest in the IPO. Post listing they are allowed to invest in the secondary market and there is a cap of holding 5% or more in one or multiple schemes of the same institution.
The price band is interestingly priced at Rs 109-110 and the shares would be allotted at Rs 110. This is probably the narrowest price band and the reason for the same is amply clear that in a book built issue you have to have a band and the price tick is in multiples of one rupee. The company had to choose between having a price of Rs 110 and refiling, and they chose Rs 110 and one rupee lower, and hence Rs 109-110.
The anchor book was very well received and there were 16 anchor investors comprising of 63 entities who were allotted shares at Rs 110.
Conversion from the current entity to a small fiancé bank will entail costs and considerable amount of effort in terms of band width and resources. The outcome and how the small finance bank shapes up will take a good twelve months to roll out. It therefore makes sense to take the pop that is likely to emerge once the share lists and then wait for things to unfold as the company gets ready for its second innings as a small finance bank.
Enjoy the fun and see things unfold.
SEBI Disclaimer: – I intend to apply in the retail category for one lot.

Equitas Holdings Limited which is tapping the capital markets with its simultaneous fresh issue for Rs 720 crs and a secondary offering to raise Rs 1,455 crs completed allocation to anchor investors. There are 16 anchor investors comprising of 63 entities and they were allotted shares at Rs 110 which is the top end of the band of Rs 109-110.

The issue opens today i.e. Tuesday the 5th of April and closes on Thursday the 7th of April. The issue is expected to garner excellent response considering the fact that headroom has been created for FII’s to enter the company post listing of shares. The FII holding will reduce from the current 93% pre-issue to 35% post issue and FII’s are allowed to buy upto 49%.

The complete list of anchor investors is given below: –

Shares of Infibeam Incorporation Limited listed on the bourses on Monday. The company had raised Rs 450 crs by way of a fresh issue of shares in a price band of Rs 360-432. The issue was a compulsory 75% QIB issue and just about got subscribed. The share saw huge volume on day one and a combined total of 88.67 lakh shares were traded. This was 85% of the IPO size of 104.16 lakh shares. The delivery percentage was 25.25% of the traded volume. The weighted average of the day’s trade 451.89 on the BSE and Rs 451.62 on the NSE which was higher than the close of the day.
One FII sold on day one with Nomura Singapore selling 8.84 lakh shares at Rs 450.52. There were no names on the buying side.

This issue had many firsts to its credit with this being the first e-commerce company to go public in India. Secondly this was probably the first time that you saw a mid-sized offering where the company raised Rs 450 crs not receiving a single share subscription from any mutual fund. The valuations of many of our unlisted private equity funded e-commerce players would be linked to the success of Infibeam.

While the issue has survived day one quite admirably with the share closing with net gains of Rs 13.70 or 3.17%, the battle now begins. It would be interesting how this company fares going forward.