ESAF Small Finance Bank shares gain 15% during stock market debut

Shares of ESAF Small Finance Bank (SFB) finished 15 per cent higher during their stock market debut on Friday. The stock hit a high of Rs 74.7 and a low of Rs 68.5 before finishing at Rs 69, up Rs 9, or 15 per cent, over the issue price of Rs 60. At the last close, the company was valued at Rs 3,554 crore.

The company’s initial public offering (IPO) had seen demand 73 times more than the shares on offer.

ESAF SFB’s Rs 460 crore IPO consisted of a fresh fundraise to the tune of Rs 390 crore, while the remaining was a secondary share sale by PNB MetLife and Bajaj Allianz.

 

The bank will use the IPO proceeds to meet future capital requirements and augment its Tier-I capital base. ESAF SFB focuses on lending to the unbanked and underbanked customer segments, especially in rural and semi-urban centres.