Equitas Holdings IPO

Equitas Holdings IPO

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Equitas LogoEquitas 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 Dates5-7 April 2016
Price BandINR 109 – 110 per share
Issue SizeINR 2163.4 – 2176.7 crore
Face ValueINR10 per share
Minimum Bid135 shares
Retail Allocation35%
Listing OnBSE, 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 purposesRemaining amount
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 Top 10 shareholders in Equitas Holdings

 

Name of shareholderEquity SharesPercentage (%)
International Finance Corporation38,523,65714.30
CDC Group PLC26,791,2309.95
India Financial Inclusion Fund26,229,8859.74
Lumen Investments Holdings Limited22,571,8208.38
Creation Investments Equitas Holdings, LLC18,182,0376.75
MVH SpA16,975,4846.30
Nederlandse Financierings – Maatschappij Voor Ontwikkelingslanden N. V. (FMO)14,884,0165.53
Deutsche Investitions Entwicklungsgesellschaft Mbh (DEG) 14,564,5215.41
Sequoia Capital India

Investments III

12,840,8614.77
Credit Access Asia N.V11,513,8814.27
Total203,077,39275.40
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Equitas Holdings’ consolidated financial performance (in INR million)
 FY2011FY2012FY2013FY2014FY2015
Total revenue2,392.01,986.52,831.74,835.27,559.3
Total expenses1,951.61,878.62,425.33,697.15,923.7
Profit/(loss) after tax285.2-34.7319.0743.41,066.3
[/vc_column_text][/vc_tta_section][/vc_tta_tabs][vc_column_text]Equitas IPO Subscription Details

CategoryShares offeredSubscription (no. of times)
Day 1 (at 5 PM)Day 2 (at 5 PM)Day 3 (at 6 PM)
QIB39,826,3360.00 0.26 14.93
NII29,734,6400.01 0.03 57.29
Retail69,380,8260.16 0.59   1.35
Employees250,0000.03 0.15   0.86
Total139,191,8020.08 0.37  17.19
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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
Email: corporate@equitas.in
Website: http://www.equitas.in/

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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
Email: einward.ris@karvy.com
Website: http://karisma.karvy.com

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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)

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44 COMMENTS

  1. I got shares from two applications yesterday night. Bull_sinha, you need to change brokers it looks.

    Listing should be good, but I’m not in hurry. 180 is my target 🙂

  2. Ye to too much ho gaya, RKSV mein shares aa gaye lekin Indiabulls abhi bhi nahin dikha raha. Anyone else facing this issue?

  3. I received SMS from Karvy this time and checked my demat account after that. Still no shares transferred. Shayad shaam tak, inteha ho gayi intezaar ki…

  4. Right, no need to worry. Actually this is normal, I had my demat account with Indiabulls some 10-11 years ago and they were usually late in transferring shares from their pool account to my demat. Sometimes I got shares in the morning of the listing day.

  5. Fikar not, shares will be credited tomorrow or by wednesday. Shares need to be in demat account by 20 April so if you have got SMS, it means Karvy is acting fast this time.

    Bid/Issue Closing Date April 7, 2016
    Finalisation of Basis of Allotment with the Designated Stock Exchange On or about April 13, 2016
    Initiation of refunds (if any, for Anchor Investors)/unblocking of funds from ASBA Account On or about April 18, 2016
    Credit of Equity Shares to demat accounts of Allottees On or about April 20, 2016
    Commencement of trading of the Equity Shares on the Stock Exchanges On or about April 21, 2016

  6. I have got SMS for credit of shares in demat account but there is nothing in my demat accounts with RKSV and Indiabulls. Anyone else facing the same issue? Is thsi normal?

  7. IPO grey market has become hot with this ipo. Jaipur mein grey market premium around 25 so expect listing to be somewhere close to 140 but don’t sell, it will go up.

  8. Bid/Issue Closing Date April 7, 2016
    Finalisation of Basis of Allotment with the Designated Stock Exchange On or about April 13, 2016
    Initiation of refunds (if any, for Anchor Investors)/unblocking of funds from ASBA Account On or about April 18, 2016
    Credit of Equity Shares to demat accounts of Allottees On or about April 20, 2016
    Commencement of trading of the Equity Shares on the Stock Exchanges On or about April 21, 2016

  9. GMP on Equitas is around 20 so I’m expecting it to list above 140. It looks a good maal to be held a little longer…I wouldn’t be selling right on listing.

  10. Not much information about the issue right now except that Thyrocare IPO will be about 480 crore in size. Price is expected to be around 450/share

    • Hi IPO Champ, do you have more details about Thyrocare??? Looking at Dr Lal this should also make money for us.

      Applied 3 forms in Equitas and it should be a good issue looking at the gray market premium.

  11. Equitas just got full subscription so guess will not have allotment to everyone. Lottery mein to sabko ek lot milega bas.

    • No Firm allotment . 135 :100 hoga.Expected listing around 135 to 140.will shoot up to 160 in 2-3days after listing.stay invested .

  12. Ankit, gmp is still above 2000 in Jaipur, I hav confirmed from 2 brokers. My understanding is that the IPO will see ,more action as it is last day. This will push gray premium more up with the market.

  13. My information was based on old rates Ankit. Rates may have come down today but 15 16 is too low. Will update once I have more information.

  14. IPO Champ, what is the source of your information?

    As far as I know, gmp is around 15-16 per share after todays fall.

  15. What do you mean by Grey Market Prices?. Whats its legal standing? How these prices are determined, and who determines these gigures? How it gets publicity and what are various subjective interests in inflating or deflating such prices?

  16. Anchor investors list is out and all is well. SBI, Birla, ICICI, all the usual suspects are here. PI Opportunities Fund is new in the list.

    Franklin Templeton Mutual Fund 11,130,885
    ICICI Prudential Mutual Fund 5,360,985
    SBI Mutual Fund 5,360,985
    Birla Sunlife Mutual Fund 5,360,985
    UTI Mutual Fund 5,360,985
    PI Opportunities Fund 5,360,985
    HDFC Standard Life Insurance 3,634,470
    Kotak Mutual Fund 3,634,470
    Birla Sunlife Insurance 2,725,920
    Tata AIA Life Insurance 2,271,510
    Kotak Life Insurance 2,271,510
    Sundaram Mutual Fund 2,271,510
    Reliance Life Insurance 1,817,370
    Reliance Mutual Fund 1,817,370
    Ambit Alpha Fund Scheme 909,187
    Total Anchor investor 59,289,127

  17. bullishbear, foreign investors are required to reduce their shareholding due to RBI’s ceiling of 74%. Investors don’t have the luxury of pricing the IPO excessively as they will run the risk of undersubscription. They are anyway making money even at the discounted IPO price.

  18. Why are so many investors exiting the company if it is leaving money on the table. Although I’m convinced it is one of the most promising IPOs in recent times, something doesn’t sound ok.

  19. GMP in Equitas went up nearly 100 kostak after today’s rally. Not every broker trades in grey market so change your broker if you want to play in this. If you are based in Mumbai or Ahmedabad finding brokers will not b difficult.

    • Ok, the premium looks good, I’m going to invest in this IPO. Can you suggest I should sell in grey market or hold after listing??

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