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Equitas Holdings IPO
Equitas Holdings IPO opens on 5 April in what is India’s first IPO of small finance bank.
Chennai-based Equitas Holdings is a diversified financial services provider focused on individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels. The company’s focus customer segment includes low income groups and economically weaker individuals operating small businesses, as well as MSEs with limited access to formal financing channels on account of their informal, variable and cash-based income profile. These customers require various financial products including small, short-term business loans as well as relatively large, longer tenor enterprise and home loans. Equitas offers a range of financial products and services that address the specific requirements of these customer segments that take into account their income profile, nature of business and kind of security available.
- Microfinance – Equitas provides loans ranging between INR5,000 and INR35,000 to its customers. The microfinance business is conducted through a wholly-owned subsidiary EMFL. As of March 31, 2015, EMFL was the fifth largest microfinance company in India in terms of gross loan portfolio (Source: CRISIL MF Opinion). The microfinance business AUM was INR23,194.83 million as of June 30, 2015, which represented 52.49% of Equitas’ aggregate AUM. As of June 30, 2015, there were 2.58 million loan accounts in the microfinance business.
- Vehicle Finance – The company’s used commercial vehicle finance customers are typically first-time formal financial channel borrowers purchasing commercial vehicles. Its customers also include small fleet operators. The Average Loan Account Size (calculated as the aggregate disbursement amount in the relevant fiscal period divided by the number of loan accounts disbursed in such period) in the vehicle finance business in fiscal 2015 and three months ended June 30, 2015 was INR0.38 million and INR0.38 million, respectively. The vehicle finance business AUM was INR12,489.16 million as of June 30, 2015, which represented 28.26% of Equitas’ aggregate AUM. As of June 30, 2015, there were 45,029 loan accounts in the vehicle finance business.
- Micro and Small Enterprise (MSE) Finance – Equitas provides asset backed financing primarily focused on self-employed individuals operating MSEs, typically in urban and semi-urban locations. The Average Loan Account Size for MSEs was INR0.23 million and INR0.22 million, respectively, in fiscal 2015 and the three months ended June 30, 2015. The MSE finance business AUM was INR6,561.91 million as of June 30, 2015, representing 14.85% of Equitas’ aggregate AUM. As of June 30, 2015, there were 29,627 loan accounts in its MSE finance business. In the three months ended June 30, 2015, the proportion of the MSE loan accounts disbursed to microfinance customers was, 72.97%.
- Housing Finance – Equitas focuses on providing micro-housing and affordable-housing loans to selfemployed individuals who have limited access to loans from banks and larger housing finance companies. The Average Loan Account Size for micro-housing loans and affordable-housing loans was INR0.26 million and INR1.19 million, respectively, in fiscal 2015 while it was INR0.29 million and INR1.16 million, respectively, in the three months ended June 30, 2015. The housing finance business AUM was INR1,945.12 million as of June 30, 2015, which represented 4.40 % of aggregate AUM for Equitas. As of June 30, 2015, there were 3,360 loan accounts in the housing finance business.
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|Subscription Dates||5-7 April 2016|
|Price Band||INR 109 – 110 per share|
|Issue Size||INR 2163.4 – 2176.7 crore|
|Face Value||INR10 per share|
|Minimum Bid||135 shares|
|Listing On||BSE, NSE|
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|Proceeds to company||INR720 crore|
|Investment in EMFL (Equitas Micro Finance Limited)||INR288 crore|
|Investment in EFL (Equitas Finance Limited)||INR288 crore|
|Investment in EHFL (Equitas Housing Finance Limited)||INR40 crore|
|General corporate purposes||Remaining amount|
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Top 10 shareholders in Equitas Holdings
|Name of shareholder||Equity Shares||Percentage (%)|
|International Finance Corporation||38,523,657||14.30|
|CDC Group PLC||26,791,230||9.95|
|India Financial Inclusion Fund||26,229,885||9.74|
|Lumen Investments Holdings Limited||22,571,820||8.38|
|Creation Investments Equitas Holdings, LLC||18,182,037||6.75|
|Nederlandse Financierings – Maatschappij Voor Ontwikkelingslanden N. V. (FMO)||14,884,016||5.53|
|Deutsche Investitions Entwicklungsgesellschaft Mbh (DEG)||14,564,521||5.41|
|Sequoia Capital India
|Credit Access Asia N.V||11,513,881||4.27|
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|Equitas Holdings’ consolidated financial performance (in INR million)|
|Profit/(loss) after tax||285.2||-34.7||319.0||743.4||1,066.3|
[/vc_column_text][/vc_tta_section][/vc_tta_tabs][vc_column_text]Equitas IPO Subscription Details
|Category||Shares offered||Subscription (no. of times)|
|Day 1 (at 5 PM)||Day 2 (at 5 PM)||Day 3 (at 6 PM)|
[/vc_column_text][vc_row_inner][vc_column_inner width=”1/2″][td_block_9 custom_title=”Articles about Equitas ” header_color=”#96d668″ tag_slug=”equitas holdings” ajax_pagination=”next_prev”][vc_separator][td_block_text_with_title custom_title=”Equitas Holdings Contact Details”]Equitas Holdings Limited
410A, 4th Floor, Spencer Plaza,
Phase II, No. 769, Mount Road,
Anna Salai, Chennai 600 002
Phone: +91 44 4299 5000
Fax: +91 44 4299 5050
Website: http://www.equitas.in/[/td_block_text_with_title][/vc_column_inner][vc_column_inner width=”1/2″][td_block_text_with_title custom_title=”What we are reading”]Mint: Equitas to launch IPO on 5 April
India Microfinance: Equitas IPO Review – Should you invest?
[/td_block_text_with_title][vc_separator][td_block_ad_box spot_id=”custom_ad_1″][td_block_text_with_title custom_title=”Registrar of Equitas Holdings IPO “]Karvy Computershare Private Limited
Karvy House, 46, Avenue 4, Street No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India
Phone: +91 40 23312454
Fax: +91 40 23311968
Website: http://karisma.karvy.com[/td_block_text_with_title][/vc_column_inner][/vc_row_inner][vc_separator color=”vista_blue”][td_block_text_with_title custom_title=”Listing Performance of Equitas Holdings IPO”]Listing Date: 21 April 2016
Listing Price on NSE: INR145.1 per share (31.9% return on allocation price)
Closing Price on NSE: INR135.2 per share (22.9% return on allocation price)[/td_block_text_with_title][/vc_column][vc_column width=”1/3″][vc_widget_sidebar sidebar_id=”td-default”][/vc_column][/vc_row]