Thrissur-based ESAF Small Finance Bank is planning to raise about ₹350 crore by the end of the current financial year via sale of shares.
“We plan to raise between ₹300 crore and ₹350 crore in this fiscal and have appointed ICICI Securities as the investment banker,” K. Paul Thomas, founder and managing director, told The Hindu. The stake sale would reduce the promoters’ holding in the bank, he added.
Promoters ESAF Micro Finance and Investments Pvt. Ltd. and Mr. Thomas own 100% stake in the bank.
According to Reserve Bank of India guidelines, promoters have to reduce their holding to 40% in the bank within five years of operations. ESAF Small Finance Bank started operations in March 2017.
At present, the bank has net worth of ₹325 crore. According to RBI norms, listing of a small finance bank is mandatory once it’s net worth crossed ₹500 crore.
ESAF Small Finance Bank has more than 400 banking outlets across 11 States and in almost 100 districts. “We are also planning to enter the northeastern States,” he said. With deposits of ₹2,500 crore and loans of ₹4,100 crore, the bank plans to achieve ₹7,000 crore deposit base and ₹8,000 crore loans by the end of FY19.