The Equitas Holding IPO, one of the 8 MFIs given SFB licence by RBI last year, has managed to emerge triumph on its move to raise funding from the domestic public in lieu of foreign investors. The issue, open for three days since Tuesday, was subscribed 1.74 times as of 1:30 PM on Thursday, the last day.
The institutional investors subscribed 1.39 times, high net-worth individuals subscribed 3.94 times and retail investors just one time, but the allocation for Equitas employees was under-subscribed only by 32% raising some eye-brows in the industry.
Equitas IPO was mooted to to raise Rs.2,176 crore by selling about 198 million shares in the price band of Rs.109 and Rs.110.
Prior to the IPO, Equitas raised Rs.652.18 crore through anchor book subscription by shares to 16 domestic institutional investors (DIIs) including Franklin Templeton Asset Management (India) Pvt. Ltd, Tata AIA Life Insurance Co. Ltd, Sundaram Asset Management Co. Ltd, Birla Sunlife Trustee Co. Pvt. Ltd and SBI Funds Management Pvt. Ltd.
When Equitas finalises its market listing, its market capitalisation will be in the range of Rs.3,700 crore, the company said. Next, Bangalore-based Ujjivan Microfinance is likely to enter the race for public funds, backed by RBI licence to start Small Finance Bank.