The IPO of Equitas Holdings or the microfinance institution, which was given a temporary licence to start a small finance bank by the RBI last year was able to get subscriptions of up to 9% of the Rs.2,200 crore funding on offer in the market.
This was in contrast to SKS Microfinance which was able to make an impressive subscription on its first day way back in 2010. Being the second MFI to take the IPO route in India and being the first among the 8 MFIs granted pre-licence to set up SFBs in India, Equitas was expected to make a huge impact in the market but failed.
The next in line is Bangalore-based Ujjivan Microfinance, which is going the IPO way soon ahead of its launch of an SFB with RBI licence.
The Equitas Holdings IPO, received bids for 1,21,44,600 shares, as against the total issue size of 13,91,91,802 shares, as per the NSE data, though the retail investors’ portion was subscribed up to 17%. Earlier, Equitas has raised Rs 652 crore from anchor investors.
Equitas Holdings IPO’s initial share sale will close on April 7. The total Rs.2,200-crore IPO consists of fresh shares aggregating Rs 720 crore and 132,425,884 equity shares by existing shareholders, including P N Vasudevan, its Managing Director and founder.
The under subscription may result in foreign equity holding to statutory 49% though Equitas wants tobring it down to 35%. Rule book says the foreign shareholding should be below 49% for operating as a small finance bank.