Equitas Small Finance Bank - IPO - Angel Broking

Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

"Equitas Small Finance Bank (SFB) is coming up with IPO on 20 Oct 2020 to raise Rs.532cr. The fresh issue of equity shares of the Equitas SFB IPO has revised recently downward to Rs 280 crore from Rs 550 crore planned earlier. The IPO consists of a fresh issue of 8 crore equity shares and an offer for sale of 7.2 crore equity shares.

Equitas SFB was the largest SFB in India in terms of a number of banking outlets, and the second-largest SFB in India in terms of assets under management and total deposits in Fiscal 2019, as per the CRISIL report. Market source predicting IPO could be in the range of 31 - 35 per share. At the rate of 35 Equitas SFB demanding valuation of 1.3x of Q1FY21 Book value. Peers are trading at a higher valuation, Ujjivan 1.8x and AU SFB at 4.9 x of Q1FY21 Book value. We believe Equita SFB valuation in the range of 1 -1.2x will garner healthy interest from investors."

Shares of Equitas Holdings Ltd was last trading in BSE at Rs.51.2 as compared to the previous close of Rs. 51.7. The total number of shares traded during the day was 292331 in over 1805 trades.

The stock hit an intraday high of Rs. 52.7 and intraday low of 51.05. The net turnover during the day was Rs. 15138242.

Source : Equity Bulls

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