About ESAF Small Finance Bank Limited
ESAF Small Finance Bank is launching its IPO. The IPO opens for subscription on November 3, 2023, and will close on 7th November.
What does the ESAF Small Finance Bank do?
Established in 1992, ESAF is a Small Finance Bank that primarily provides loans to rural and semi-urban clients. The bank has a presence in unbanked urban, semi-urban, and rural regions offering micro loans, retail loans, MSME loans, loans to financial institutions, and agricultural loans.
What is the issue size of the ESAF Small Finance Bank IPO?
The public offer comprises a fresh issue of equity shares worth Rs. 390.7 crores and an offer for sale of Rs. 72.3 crores from existing shareholders, totalling Rs. 463 crores.
Financials of ESAF Small Finance Bank
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Net Profit (₹ crores) | Net Interest Income (₹ crores) | EPS |
| March 31, 2021 | 12,338.65 | 1,768.42 | 105.40 | 921.59 | 2.46 |
| March 31, 2022 | 17,707.56 | 2,147.51 | 54.73 | 1,147.14 | 1.22 |
| March 31, 2023 | 20,223.657 | 3,141.57 | 302.33 | 1,836.34 | 6.73 |
| June 30, 2022 | 18,104.101 | 738.32 | 105.97 | 448.76 | 2.36 |
| June 30, 2023 | 20,795.941 | 991.78 | 129.96 | 585.45 | 2.89 |
Risk factors to consider:
Micro loan dependency: The company heavily relies on micro loans. Any downturn in the microfinance sector could negatively impact its financial health.
Unsecured advances: A significant portion of the company’s advances are unsecured. Recovery delays or failures can strain its financial position.
Gross NPAs: Ineffectiveness in controlling gross NPAs or improving the Provisioning Coverage Ratio can jeopardize the company’s financial stability.
Regional concentration: The business is predominantly based in South India, especially Kerala and Tamil Nadu. Economic shifts in this region can influence the company’s financial outcomes.
Schedule of ESAF Small Finance Bank IPO
| Issue Period | 3rd November to 7th November 2023 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | 10th November 2023 |
| Initiation of Refunds | 13th November 2023 |
| Credit of Shares | 15th November 2023 |
| Date of Listing | 16th November 2023 |
| Mandate end date | 22nd November 2023 |
| Anchor Investors Lock-In End Date | 7th December 2023 |
How to apply to the ESAF Small Finance Bank Limited IPO?
You can apply for the ESAF Small Finance Bank Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for ESAF Small Finance Bank Limited IPO?
You can check the allotment status for the ESAF Small Finance Bank Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.