The IPO will see Equitas and its investors sell shares worth a little over Rs.2,200 crore.
The company got approval for its IPO from capital markers regulator Securities and Exchange Board of India (Sebi) on 29 December 2015. Equitas is one of the 10 companies that have been selected by the Reserve Bank of India to set up small finance banks, niche lenders aimed at helping small businesses and farmers get easier access to funding.
Total revenue of the company surged 56% to Rs.755.9 crore in 2014-15 from Rs.483.5 crore in the previous year, as per the data from the company’s draft IPO filings.
The founder of the company Mr. P.N. Vasudevan holds 3.17% stake in the company. He is likely to sell a part of his holding. Sequoia Capital, World Bank arm International Finance Corp, Dutch development finance institution FMO, Helion Venture Partners, Aavishkaar, India Financial Inclusion Fund, Westbridge Ventures, Lumen Investment Holdings and Aquarius Investments are the foreign investors also ready to sell shares in the IPO. These investors hold a 67.53% stake in the company.
Equitas Holdings limited founded on June 22, 2007 based at Chennai in India. It is a diversified financial services provider facilitating to individuals micro and small enterprises. The company offers small loans to individuals and companies and also runs a housing finance business, further likely to merge the units to create the small finance bank.
The firm offers below mentioned range of financial products and services:-
1) Microfinance:- The firm is responsible for lending since inception. It is proving loans ranging approximately between Rs. 5,000 and Rs.35,000 to its customers, depending on the loan cycle and mode of disbursement. It offers ecosystem of initiative to support borrowers.
2) Vehicle Finance:- The company focuses on funding used commercial vehicles and offers Segments serviced by moneylenders. The company belongs a few NBFCs in India operating in the used commercial vehicle finance business.
3) Housing Finance:- The company is helping to the customers (Informal salaried and self employed segment) who are seeking for housing finance for their home ownership.
4) Food Security:-It is set up for the purpose to provide food security and nutrition related information to low income households.
5) Corporate Social and Responsibilities: The company offers health services and runs programs for skill development through Equitas Gyan Kendra.
6) Education Initiatives:- It has a set up with a name of Equitas Gurukul to provide quality education at affordable cost among children of Equitas members.
Outlook of the Firm:-
- Robust corporate governance standards and transparent operations leading to institutional confidence and customer goodwill
- Comprehensive understanding and successful track record with underserved customer segment offering significant growth opportunities
- Standardized operating procedures and efficient use of technology resulting in effective risk management and improved efficiencies
- Diversified product offering and markets with significant cross-selling opportunities.
- Experienced management and strong employee engagement
- Commitment to social initiatives
Objects Of The Issue:-
1) To enhance the Capital base of the firm’s subsidiaries to meet their future capital requirements arising out of the growth in its business. Hence, the company propose to utilize Rs. 5200 million from the Net Proceeds.
2) General Corporate Purposes.
Summary Of Issue:
|Issue Open:-||April 5, 2016 – April 7, 2016|
|Issue Type||100% Book Built Issue IPO|
|Issue Size (Shares)||Equity Shares of Rs. 10|
|Issue Size in (Value)||Rs. 2175 Crore|
|Face Value||Rs. 10 Per Equity Share|
|Issue Price||Rs. 109 to Rs. 110 Per Equity Share|
|Minimum Order Quantity||–|
|Listing At||BSE, NSE|
The public offer includes:-
|Particular||Number Of Equity Shares|
|Fresh Issue of||Equity Shares aggregating up to Rs. 720 crore|
|Offer For sale of||Up to 130,825,886 Equity Shares|
Promoters Of the Company:-
The Company is a professionally managed company and does not have an identifiable promoter in terms of the SEBI Regulations and the Companies Act, 2013. Therefore, the company does not have a’ promoter group in terms of the SEBI Regulations.
|Particulars||For the year/Period ended (Rs. in Million)|
|Total Equity & Liabilities||9,589.00||9,570.60||6,325.96||4,362.99||2,975.98|
|Profit After Tax (PAT)||8.19||16.86||4.74||10.57||(63.53)|
Lead Manager Details:-
1) Axis Capital Limited
1st Floor, Axis House
C-2, Wadia International Centre
P.B. Marg, Worli
Mumbai 400 025
Tel: (91 22) 4325 2183
Fax: (91 22) 4325 3000
Investor grievance e-mail: email@example.com
Contact Person: Simran Gadh
SEBI Registration No.: INM000012029
2) Edelweiss Financial Services Limited
14th Floor, Edelweiss House
Off CST Road, Kalina
Mumbai 400 098
Tel: (91 22) 4086 4400
Fax: (91 22) 4086 3610
Investor grievance e-mail:
Contact Person: Viral H. Shah
SEBI Registration No.: INM0000010650
3) HSBC Securities and Capital Markets (India) Private
52/60, Mahatma Gandhi Marg
Fort, Mumbai 400 001
Tel: (91 22) 2268 5555
Fax: (91 22) 2263 1284
Investor Grievance e-mail:
Contact Person: Mayank Jain/ Shreye Mirani
SEBI Registration No.: INM000010353
4) ICICI Securities Limited
ICICI Centre, H.T. Parekh Marg
Mumbai 400 020
Tel : (91 22) 2288 2460
Fax : (91 22) 2282 6580
Investor Grievance e-mail: firstname.lastname@example.org
Contact Person: Vishal Kanjani
SEBI Registration No.: INM000011179
Registrar To The Issue:-
Karvy Computershare Private Limited
Karvy Selenium Tower B
Plot 31-32, Gachibowli
Financial District, Nanakramguda
Hyderabad 500 032
Tel: (91 40) 6716 2222
Fax: (91 40) 2343 1551
Investor Grievance e-mail:
Contact Person: M Murali Krishna
SEBI Registration No. INR000000221
Registered Office Details:-
410A, 4th Floor, Spencer Plaza, Phase II,
No. 769, Mount Road, Anna Salai,
Chennai 600 002.
Tel: (91 44) 4299 5000
Fax: (91 44) 4299 5050