The IPO comprises a fresh issue of the bank’s shares up to Rs 330 crore and an offer for sale aggregating up to Rs 1,000 crore by Fincare Business Services, which is the promoter.
This offer includes a reservation for subscription by eligible employees.
Global coordinators and book running lead managers are ICICI Securities Limited, Axis Capital Limited, IIFL Securities Limited and SBI Capital Markets Limited while Book Running Lead Manager is Ambit Private Limited. KFin Technologies Private Limited is registrar to the offer.
The company is a “digital-first” SFB with a focus on unbanked and under-banked customers, especially in rural and semi-urban areas. According to CRISIL, among comparable SFB peers in India, it had the highest growth rate in advances over FY2018 to FY2020.
In FY20, the bank had the best adjusted ROA and ROE (adjusted for COVID-19 provisions) among SFBs and, for the nine months ended December 31, 2020 and FY2020, it was one of India’s most profitable SFBs, based on ROE and ROA, the draft paper said.
Its gross loan portfolio grew from Rs 2,154.37 crore to Rs 5,547.58 crore, registering a CAGR of 41.05 per cent, from March 31, 2018 to December 31, 2020.