ESAF Small Finance Bank Limited IPO: Date, Review, Share Price, Financial Performance & Valuation

Manish Kothari
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Manish Kothari


ESAF Small Finance Bank was incorporated in May 2016. It is a new age social bank that continues to redefine the banking experience for its stakeholders. Currently, the bank has its presence across the country in urban, semi-urban, rural, and rural unbanked areas as well. ESAF Bank mainly focuses on expanding its business in the unbanked or underbanked areas.

ESAF Small Finance Bank has an objective of “Fighting the Partiality of Prosperity” by strengthening the people at the bottom of the pyramid with a customer base of 40.74 lakhs. The company has shown excellent growth in the past years and aims to continue doing so in the coming years. As of 31st March 2020, the Bank is operating with an employee base of 3,337 personnel catering to varied needs of customers. Also, the bank has 311 ATMs and 136 business correspondence outlets in  the country.

Currently, the ESAF Small Finance Bank has 500 branches out of which a very large portion is located in semi-urban and rural areas across 19 states & UTs. 

The Bank has a well-diversified product portfolio which not only caters to the underprivileged segment but also to the customers from Tier-1, Tier-2, and Tier-3 cities in the country. Now, with the launch of the IPO, the company is planning to boost its capital base.

Promoters of the company are Mr. Kadambelil Paul Thomas and ESAF Financial Holdings Private Limited.

Strengths of the company:

  • The company has a strong rural and semi-urban banking franchise.
  • The portfolio of retail deposits has been growing at a rapid pace along with low concentration risk.
  • The company has a deep understanding of the microfinance banking segment which helped them to grow their business outside their home state i.e Kerala.
  • It has an advanced IT platform and a technology-driven model.
  • It has a team of experienced & professional board and key management.
  • Customer-centric products & other non-financial services to have offered a strong connection with its customers.

Purpose of the IPO:

  • To meet the Bank’s future capital requirements by utilizing the net proceeds from the fresh issue of shares.

To meet the general corporate purposes.

Financial Performance of the company:

 6 month period ended 30th September 2020FY 2020FY 2019FY 2018
Total Revenue887.921,564.441,140.78698.69
Total Expenses757.501,356.051,050.50671.70
Profit after tax130.42190.3990.2826.99
Total Assets11,185.859,469.977,058.414,725.38

*All the values are in crores 

*FY18 & FY19 as per DRHP and FY20 & HY21 as per the annual/quarter report.

Valuation of the company:

 6 month period ended 30th September 2020FY 2020FY 2019FY 2018
Basic Earnings per Share (EPS)3.054.452.370.89
Diluted Earnings per Share (EPS)3.054.452.370.89
Return on Net Worth (%)-17.94%10.10%7.86%
Net Assets Value per Equity Share-24.8020.89-

*FY18 & FY19 as per DRHP and FY20 & HY21 as per the annual/quarter report.

ESAF Small Finance Small Bank DRHP

IPO details:

Face Value₹10 Per Equity Share
Market LotShares
Minimum Order QuantityShares
Price Band₹ - ₹ Per Equity Share
Issue typeBook Built Issue IPO
Issue SizeApprox ₹976  Crores
Fresh Issue₹800 Crores
Offer for Sale₹176 Crores
Listing BSE, NSE

Important IPO dates:

Open DateTo be declared
Close DateTo be declared
Allotment DateTo be declared
RefundsTo be declared
Credit of shares to Demat AccountTo be declared
Listing DateTo be declared

Allocation Quota:

Qualified Institutional Buyers (QIBs)Not less than 75%
Non- Institutional Buyers (NIIs)Not more than 15%
Retail InvestorsNot More than 10%

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