
ESAF Small Finance Bank IPO Details:
ESAF Small Finance Bank Limited is a small finance bank with a focus on unbanked and under-banked customer segments, especially in rural and semi-urban areas. This business model focuses on the principles of responsible banking, providing customer-centric products and services through the innovative application of technology. The company follows a social business strategy seeking a triple bottom-line impact: people; planet; and prosperity. Its goal is to become the top social bank in India by providing equitable chances through widespread financial inclusion, economic development, and livelihood. It adopted various policies to implement its triple bottom line approach, including an Environmental, Social, and Governance (“ESG”) policy which includes the protection of the environment and ensuring sustainable development, promoting financial inclusion and gender equality through specialized financial services and establishing a governance framework to ensure accountability, transparency, and compliance with internal and external ESG standards.
ESAF Small Finance Bank IPO Business Offerings:
- Micro Loans, which comprise Microfinance Loans and Other Micro Loans
- Retail loans, which include gold loans, mortgages, personal loans, and vehicle loans
- MSME loans
- Loans to financial institutions
- Agricultural loans
ESAF Small Finance Bank Limited has an extensive network of 700 banking outlets (including 59 business correspondent-operated banking outlets), 743 customer service centers (which are operated by its business correspondents), 20 business correspondents, 2,023 banking agents, 481 business facilitators, and 528 ATMs spread across 21 states and two union territories, serving 6.83 million customers as at March 31, 2023.
ESAF Small Finance Bank IPO Details:
IPO Open Date | Not Available |
IPO Close Date | Not Available |
Listing Date | Not Available |
Face Value | ₹10 per share |
Price | Not Available |
Lot Size | Not Available |
Issue Size | [●]shares
(aggregating up to ₹629.04 Cr) |
Offer For Sale | [●]shares
(aggregating up to ₹142.3Cr) |
Fresh Issue | [●]shares
(aggregating up to ₹486.74 Cr) |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
QIB Shares Offered | Not more than 50% of the Offer |
NII (HNI) Shares Offered | Not less than 15% of the Offer |
Retail Shares Offered | Not less than 35% of the Offer |
Promoters | Kadambelilpaul Thomas And Esaf Financial Holdings Private Limited |
ESAF Small Finance Bank IPO Financial Analysis:
Particulars | FY-23(in cr.) | FY-22(in cr.) | FY-21(in cr.) | CAGR |
Interest Earned | 2853.659 | 1939.925 | 1641.17 | 31.9% |
Other Income | 287.913 | 207.583 | 127.25 | 50.4% |
Interest Expended | 1017.319 | 792.786 | 719.58 | 18.9% |
Operating Expenses | 1230.541 | 862.871 | 631.86 | 39.6% |
Provisions and Contingencies | 591.379 | 437.119 | 311.59 | 37.8% |
PROFIT | 302.33 | 54.73 | 105.40 | 69.4% |
ESAF Small Finance Bank IPO Assets Under Management:
AUM | FY-23(in cr.) | % | FY-22(in cr.) | % | FY-21(in cr.) | % | CAGR |
Micro Loans | 12254.88 | 75.04% | 10015.96 | 81.16% | 7145.28 | 84.80% | 31.0% |
Retail loans | 2614.75 | 16.01% | 1464.97 | 11.87% | 960.71 | 11.40% | 65.0% |
MSME loans | 160.06 | 0.98% | 123.31 | 1.00% | 48.35 | 0.57% | 81.9% |
Loans to financial institutions | 613.74 | 3.76% | 409.63 | 3.32% | 262.54 | 3.12% | 52.9% |
Agricultural loans | 687.82 | 4.21% | 326.81 | 2.65% | 9.03 | 0.11% | 772.8% |
Total AUM | 16331.27 | 100% | 12340.69 | 100% | 8425.93 | 100% | 39.2% |
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Check ESAF Small Finance Bank IPO Allotment Status
Go ESAF Small Finance Bank IPOallotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
ESAF Small Finance Bank IPO Major Shareholders:
S.NO. | Name of the Shareholder | No. of Shares | % of pre-Offer shareholding |
1. | Corporate Promoter | 280,758,396 | 62.46% |
2. | Kadambelil Paul Thomas | 31,186,785 | 6.94% |
3. | ESMACO | 22,413,659 | 4.99% |
4. | Yusuffali Musaliam Veettil Abdul Kader | 22,413,659 | 4.99% |
5. | PNB MetLife India Insurance Company Limited | 21,346,993 | 4.75% |
6. | Muthoot Finance Limited | 18,717,244 | 4.16% |
7. | Bajaj Allianz Life Insurance Company Limited | 17,469,428 | 3.89% |
8. | George Ittan Maramkandathil | 13,333,333 | 2.97% |
9. | PI Ventures LLP | 8,734,714 | 1.94% |
10. | ICICI Lombard General Insurance Company Limited | 6,239,081 | 1.39% |
Total | 442,613,292 | 98.48% |
ESAF Small Finance Bank IPO Offer for Sale Details:
S. No. | Name of the Selling Shareholder | Aggregate amount of Offer
for Sale (in ₹ crore) |
|
1. | ESAF Financial Holdings Private Limited | Up to 119.26 | |
2. | PNB MetLife | Up to 12.67 | |
3. | Bajaj Allianz Life | Up to 10.37 |
ESAF Small Finance Bank IPO Strengths:
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ESAF Small Finance Bank Limited has a strong rural and semi-urban banking franchise. As per the CRISILMI&a Report, the company had the second-highest portfolio share and third-highest share of total banking outlets in rural and semi-urban areas as of March 31, 2023, among its compared peers.
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ESAF Small Finance Bank Limited has a fast-growing retail deposit portfolio with low concentration risk. As per the CRISIL MI&A Report, the company had the highest share of retail deposits as a percentage of its total deposits as of March 31, 2023, among its compared peers.
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Due to ESAF Small Finance Bank’s customer-centric products, procedures, and other non-financial services for Micro Loan customers, it enjoys strong customer connections and high customer retention rates.
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ESAF Small Finance Bank has a deep understanding of the microloan segment, which has enabled it to grow its business outside of Kerala, its home state. As of March 31, 2023, the company had over 4.88 million customers with Micro Loans, the majority of whom were women.
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ESAF Small Finance Bank has a technology-driven model with an advanced digital technology platform. The company offers its customers various digital platforms, including an Internet banking portal, a mobile banking platform, etc. Its customers are also able to register for its savings accounts on a unified payment interface-based mobile application. Its account opening and loan underwriting processes have been digitalized.
ESAF Small Finance Bank IPO Risk Factors:
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ESAF Small Finance Bank is significantly dependent on Micro Loans and any adverse developments in the microfinance sector could adversely affect its business.
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ESAF Small Finance Bank’s Micro Loans and some of its retail loans are unsecured and are at a higher credit risk than secured loans because they are not supported by collateral. Any failure to recover the full amount of principal and interest on unsecured advances given to its customers could adversely affect its business.
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ESAF Small Finance Bank incurs significant operating expenses and any increase in these operating expenses without a corresponding increase in its Net Interest Income and other income combined will adversely affect its financial condition.
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ESAF Small Finance Bank business correspondents (which include ESMACO, a Promoter Group and Group Entity, and Lahanti, a Group Entity) have sourced the majority of its advances. All of our Business correspondents work for it on a non-exclusive basis. If any of its business correspondents and in particular ESMACO prefer to promote its competitors’ loans over its loans or the agreements between them are terminated or not renewed, it would adversely affect its business.
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ESAF Small Finance Bank could be subject to various sanctions and penalties by the RBI for failing to comply with the requirement to list the Equity Shares on a stock exchange in India before July 31, 2021. RBI may take regulatory action against it in the future.
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ESAF Small Finance Bank is in non-compliance with certain Risk Based Supervision (“RBS”) Tranche III requirements and if the RBI imposes penalties on it for this non-compliance, it could adversely affect its reputation and business
ESAF Small Finance Bank IPO Prospectus:
- ESAF Small Finance Bank Limited IPO DRHP https://www.sebi.gov.in/filings/public-issues/jul-2023/ ESAF-small-finance-bank-limited-drhp_73679.html
- ESAF Small Finance Bank Limited IPO RHP-
Registrar to the offer:
Link Intime India Private Limited
Tel: +91 022 4918 6060
E-mail: ESAF.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor Grievance ID: ESAF.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration Number: INR000004058