Upcoming IPO - ESAF Small Finance Bank Limited

About Company’s Business:

They are a small finance bank based in Kerala, with a specific focus on serving the unbanked and under-banked customer segments, particularly in rural and semi-urban areas. Their primary product offerings encompass advances and deposits, which include current accounts, savings accounts, term deposits, and recurring deposits. Their advances can be categorized into: (a) micro loans, including microfinance loans adhering to the RBI Regulatory Framework for Microfinance Loans Direction, 2022, as well as other micro loans; (b) retail loans, such as gold loans, mortgages, personal loans, and vehicle loans; (c) loans targeting micro, small, and medium enterprises (MSMEs); (d) loans to financial institutions; and (e) agricultural loans.

About the Industry:

Small finance banks have a mission to cater to underserved individuals and communities by offering savings options and extending credit to small businesses, small-scale farmers, micro and small industries, and other unorganized sectors, often through informal channels. The 12 small finance banks, which include the mentioned institution, collectively represented around 13% of the total Asset Under Management (AUM) in the industry as of June 30, 2023. The AUM for advances in small finance banks experienced a notable 29% Compound Annual Growth Rate (CAGR) from March 31, 2018, to June 30, 2023, and CRISIL MI&A anticipates that this growth will continue, with a projected CAGR of 22-24% between June 30, 2023, and March 31, 2025, as per the CRISIL MI&A Report.

Key Financial Information (₹ in millions):

Particulars As of June 30, 2023 As of June 30, 2022 As of March 31, 2023 As of March 31, 2022 As of March 31, 2021
Equity Share Capital (₹ million) 4,494.74 4,494.74 4,494.74 4,494.74 4,494.74
Net Worth (₹ million) 18,390.93 15,127.62 17,091.29 14,067.96 13,520.64
Net Asset Value per Equity Share (₹) 40.92 33.66 38.03 31.30 30.08
Total Borrowings (₹ million) 27,391.25 25,555.00 33,541.95 29,528.33 16,940.00
Total Income (₹ million) 9,917.75 7,383.24 31,415.72 21,475.08 17,684.21
Net Profit (₹ million) 1,299.64 1,059.66 3,023.33 547.32 1,053.96
Earnings per Equity Share - Basic 2.89* 2.36* 6.73 1.22 2.46
Earnings per Equity Share - Diluted 2.89* 2.35* 6.71 1.22 2.46

*Note: Earnings per Equity Share for the three months period ended June 30, 2023 and June 30, 2022 are not annualized.

Objective of the Issue:

  1. For augmentation of our Bank’s Tier – 1 capital base(1)

  2. General corporate purposes.

For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.

Important information regarding the IPO
Open Date Friday, November 3, 2023
Close Date Tuesday, November 7, 2023
Issue Size ₹463.00 crores
Price ₹57 to ₹60 per share
Lot Size 250 Shares
Basis of Allotment Friday, November 10, 2023
Initiation of Refunds Monday, November 13, 2023
Credit of Shares to Demat Wednesday, November 15, 2023
Listing Date Thursday, November 16, 2023

How to apply for this IPO?

You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.

Quick Apply for the IPO here!

Do let us know your thoughts on this IPO.



2,25,24,998 equity shares in the Public Issue of ESAF Small Finance Bank Limited, allocated for Anchor Investors (AIs), were subscribed at a price of Rs. 60 per equity share.

Hello why is this IPO limited to max amount of 200000Rs only? This means I can not subscribe in sHNI category, as minimum amount for sHNI is 210000Rs for this IPO.

For other IPOs, this limit is 500000Rs

I think this is by some mistake. Please allow upto 5L Rs.

Hi @amish the maximum limit for IPO orders on Dhan is Rs. 5,00,000 as we process the application via UPI which inherits the max limit of Rs. 5,00,000. Having said this, I’ll check this case and get it corrected

Ok thanks.

Please do inform when done.

I just checked but it’s still not allowing more than 13 lots. When applying for 14 lots, the amount exceeds 2L and the app says amount can not be more than maximum ammount.

@amish We have fixed this, do check now

1 Like

Yes it is done. Thanks.