Equitas SFB to raise up to Rs 1,000 crore via QIP

Equitas SFB to raise up to Rs 1,000 crore via QIP

Equitas new
  • Equitas Small Finance Bank (SFB) is going to raise around Rs 1,000 crore in the equity capital through issue of shares to institutional investors which inturn will meet their minimum public shareholding (MPS) norms. This amount which is being raised includes a premium on shares.
  • The bank’s board has cleared this and this will satisfy the stipulations of Securities and Exchange Board of India (Sebi).
  • Their Capital Adequacy ratio stood at 24.07 per cent at the end of June this year.
  • It may be noted that the listed entities are expected to have at least 25 per cent public holding and in the case of Equitas, the promoters held about 81 per cent stake in the bank as of June. Further, the bank made its entry into the stock market on November 2, 2020.
  • Reserve Bank of India, had last year barred Equitas SFB from opening new branches after it missed the deadline to list its shares on the stock exchanges, which is a key licensing condition. Also, RBI had frozen the salary of the SFB’s managing director and CEO. Both curbs were lifted after listing.
  • Meanwhile, its deposits rose by 40 per cent (year-on-year, or YoY) to Rs 18,094 crore as in Q2FY22 from Rs 12,901 crore last year. The share of low-cost deposits — Current Account and Savings Account (CASA) — in total deposits stood at 45 per cent in September, up from 25 per cent a year ago.

The bank’s advances rose by 13 per cent YoY to Rs 18,981 crore in Q2 from Rs 16,731 crore a year ago. Disbursements rose 65 per cent YoY to Rs 3,137 crore in Q2.

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