ESAF Small Finance Bank expresses commitment for listing
Currently, promoters and promoter group together hold 77.94 per cent stake in the bank, which commenced its operation in March 2017. Besides, SIDBI Trustee Company Ltd-A/C Samridhi Fund holds 12.24 per cent stake in the bank.
Speaking to , ESAF Small Finance Bank Managing Director K Paul Thomas said, "We have got the approval from Sebi for the initial public offering only in March. We have time till March 2021 and we hope that things will be normal by that time."
Thomas, who holds 7.29 per cent stake in the bank in his individual capacity, said that making any prediction about the timeline at this point of time is difficult but going forward, things should improve.
In terms of the licensing guidelines, a small finance bank is required to list its equity on the stock exchanges within a period of three years from reaching a net worth of Rs 500 crore.
Talking about various efforts undertaken by the bank to help poor and hapless during the ongoing nation-wide lockdown, Thomas said, "We are not only providing banking service but engaging to support underprivileged especially stranded migrant workers in meeting daily needs under the corporate social responsibility initiative.
The bank has launched mobile clinics called 'Bandhu Clinics' to cater to medical needs of migrant workers especially from eastern India in Kerala and also set up a dedicated helpline number for them, he said.
On the banking side, the bank has launched COVID-19 care loan, he said adding that it is a pre-approved loan for getting started once the lockdown is over.
As about 96 per cent of customers are small borrowers, the bank has provided a three-month moratorium in default mode as per the RBI guidelines of March 27 to help them in these difficult times.
Citing the experience of the bank during the devastating Kerala flood in 2018, he said small businesses if given timely financial support are back on their feet quickly.
"Keeping that in mind, the bank is ready with products for our different sets of borrowers and disbursement will start quickly after the lockdown is over," he added.
Bank branches and ATMs across the 17 states and union territories are functioning and providing help to customers and the public at large, he added.
ESAF Small Finance Bank, which got go-ahead from the Securities and Exchange Board of India (Sebi) to float a Rs 976-crore initial public offering last month, plans to raise Rs 800 crore through fresh issue and Rs 176.2 crore via offer-for-sale (OFS).
The bank may consider a pre-IPO placement of up to Rs 300 crore.
The proceeds from the fresh issue will be used to augment the bank's tier-1 capital (primarily loans or advances and investment portfolio) to meet future capital requirements. DP HRS