Equitas Small Finance Bank IPO begins today; price band at Rs 32-33 per equity share

New Delhi: Equitas Small Finance Bank’s initial public offering (IPO) over Rs 500 crore opens on Tuesday. The IPO consists of a fresh issue aggregating up to Rs 280 crore and an offer for sale of up to 7.2 crore equity shares by Equitas Holdings Limited, the holding company of the bank.

Here is all you need to know about the Equitas Small Finance Bank IPO

• The offer opens on October 20 and closes on October 22.
   
• Equitas Small Finance Bank fixed the price band for its IPO at Rs 32-Rs 33 per equity share.
   
• The IPO consists of a fresh issue aggregating up to Rs 280 crore.
   
• It consists an offer for sale of up to 7.2 crore equity shares by Equitas Holdings Limited, the holding company of the bank.
   
• Post this offer, Equitas Holdings share in the bank will come down to 82-83 per cent from 95.49 per cent.
   
• The bank’s capital adequacy ratio is around 21 percent level and post the issue it will improve to 22 per cent.
   
• Equitas SFB will complete its five years of operations in September 2021.

As per the RBI norms, the promoter of a small finance bank must reduce their shareholdings in the bank to 40 per cent from five years of operations.