Microfinance institution Equitas Holdings today filed draft papers with the capital markets regulator Sebi to raise an estimated Rs 1,200 crore through initial public offering (IPO).
This will be the second microfinance company to tap the primary markets after SKS Microfinance's maiden public offering in 2010 that raised Rs 1,654 crore.
Equitas, last month, received in-principle approval from the Reserve Bank to set up small finance banks to provide basic banking services to small farmers and micro industries.
The IPO comprises fresh issue of shares worth Rs 600 crore and an equal amount by selling shares to existing shareholders, according to sources.
The shareholders that have proposed to sell shares include International Finance Corporation (IFC), Sequoia Capital, Aavishkaar and Helion Capital.
The chennai-based company is planning to garner Rs 300 crore by selling shares to institutional investors ahead of IPO, as per the Draft Red Herring Prospectus.
Axis Capital, ICICI Securities, HSBC and Edelweiss Financial Services are managing the company's IPO.
