NO SMALL JOURNEY FOR EQUITAS SMALL FINANCE BANK
FROM A MICRO-FINANCE firm to a bank, it has been quite a journey for Equitas. So much has changed in 23 summers since P N Vasudevan set out to float his own enterprise way back in 2007. Today, this has become a significant name in the Chennai private banking space. After much delay, partly due to the Covid situation, Equitas Small Finance Bank has come out with an initial public offer (IPO) of its shares. The IPO comprises fresh issue of 85 million shares and offer for sale of 7 2 million shares. After the IPO, the stake of Equitas Holdings Ltd, the holding company of Equitas Small Finance Bank, will fall to about 82 per cent. If things go according to the plan, the shares of Equitas will get listed on 2 November.
The shareholders of Equitas Holdings, the parent of the bank, will get no price preference if they wish to subscribe to the shares of the bank. However, the bank has decided to reserve a portion of the issue (about 10 per cent) for this category. To qualify for this category, one needs to hold at least one share of Equitas Holdings as on the RHP (red herring prospectus) filing date.
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