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.
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
Retail Allocation 35%
Listing On BSE, NSE
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

 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
MVH SpA 16,975,484 6.30
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

Investments III

12,840,861 4.77
Credit Access Asia N.V 11,513,881 4.27
Total 203,077,392 75.40
Equitas Holdings’ consolidated financial performance (in INR million)
  FY2011 FY2012 FY2013 FY2014 FY2015
Total revenue 2,392.0 1,986.5 2,831.7 4,835.2 7,559.3
Total expenses 1,951.6 1,878.6 2,425.3 3,697.1 5,923.7
Profit/(loss) after tax 285.2 -34.7 319.0 743.4 1,066.3

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)
QIB 39,826,336 0.00  0.26  14.93
NII 29,734,640 0.01  0.03  57.29
Retail 69,380,826 0.16  0.59    1.35
Employees 250,000 0.03  0.15    0.86
Total 139,191,802 0.08  0.37   17.19

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/

What we are reading

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

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 on "Equitas Holdings IPO"

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Lovely listing as expected, sold my lot at 141. Will make two applications in Thyrocare.

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 🙂

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

Has anyone got shares in trading accounts. Kal listing hai aur shares ka ata pata nahin hai

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…

Ankit, 10-11 saal pehle indiabiulls kahan se aa gaya? Kuch bhi

You need to do some research before writing Vikas. Check this link, Indiabulls started in 2000

https://en.wikipedia.org/wiki/Indiabulls

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.

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… Read more »

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?

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.

Money deducted for one lot from ICICI bank. Listing around 140

Allotment in all the three applications i submitted!!

Amount debited from SBI and HDFC accounts but Karvy website is still not updated

http://kosmic.karvy.com:81/ipotrack/

Check this out, thyrocare grey market premium is strong, starting rates at 1200 per application.

http://ipocentral.in/ipo-discussion/thyrocare-technologies-ipo/

It looks Tyrocare’s Ipo is also coming up. Has anyyone got details on that?

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

Allocation is tomorrow dear, almost everyone will get 135 shares

Hi guys, can any one help when will be shares allocated and on what logic?

The latest update on Equitas is that GMP has fallen to 19

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.

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

Thyrocare is the next IPO on 26th April. Equitas listing on 21 is before that, hurray!

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.

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 .

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.

Employee subscription on BSE went down today from yesterday night, is there something they know that we don’t?

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.

IPO Champ, what is the source of your information?

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

Equitas IPO subscription on Day 1 at 5PM
QIB 0.06%
NII 1.2%
Retail 16.9%
Employees 3.5%
Total 8.7%

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?

gmp has crossed 2000 in Jaipur

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

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.

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.

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??

This IPO is nice… bharo applications. Good grey market premium as kostak rates trending above 1,000/-

What is the source of this information. my broker is not taking application as of now

IPO priced between 109 and 110. What a joke it is a very narrow range almost fixed price.

This looks like an interesting company, what is the price band?

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