ESAF Small Finance Bank IPO Review – You need to understand the company’s fundamentals, financials, and future growth prospects before investing in the ESAF IPO. Even after the ESAF Small Finance Bank IPO share price is listed on the exchanges, you need to understand if you should keep on investing in the company for long-term or book listing gain. Let us find out.
- ESAF SMALL FINANCE BANK IPO Details: Key Facts
- ESAF small finance bank filed a Draft Red Herring Prospectus with SEBI on July 24, 2021.
- Headquartered in Thrissur, the bank provides banking services and small loans to the underbanked.
- The bank was founded in March 2017 by Kadambelil Paul Thomas, Mereena Paul, and Jacob Samuel.
- IPO size: ₹ 463 crore
- Fresh Issue: ₹ 397.7 crore
- OFS: ₹ 72.3 Crore
- IPO opens date from 3rd Nov, 2023 to 7th Nov, 2023
- IPO listing date 16th Nov, 2023
- ESAF SMALL FINANCE BANK IPO Price: ₹ 57 – 60 per share
- Face value of ESAF SMALL FINANCE BANK IPO share price: ₹ 10
- Strong revenue track record over the last five years. Revenue from operation has increased from Rs1,141 Crore in FY2019 to Rs 3,141 crore in FY2023.
- The small finance banking segment in India is under-penetrated compared with the opportunity size of the overall banking sector. This will offer the bank a sizable market to grow.
Table of Contents
ESAF Small Finance Bank IPO Details
| ESAF Small Finance Bank IPO Details | ESAF Bank IPO date Price and other details |
| ESAF Bank IPO date | 3rd – 7th Nov, 2023 |
| IPO Price band | ₹ 57 – 60 per share |
| IPO date of allotment | Friday, 10th Nov, 2023 |
| Refunds Initiation date | Monday, 13th Nov, 2023 |
| Credit of Shares to Demat Account | Wednesday, 15th Nov, 2023 |
| ESAF Bank IPO date of listing | Thursday, 16th Nov, 2023 |
| Total IPO size | ₹ 463 Crore |
| Fresh Issue | ₹ 390.7 Crore |
| Offer for Sale | ₹ 72.3 Crore |
| Equity Shares outstanding prior to the Offer | 449,473,798 Equity Shares |
| Retail Allocation | 35% |
| ESAF Bank share price Face Value | ₹ 10 per share |
| ESAF Bank share price Listing on | BSE & NSE |
ESAF Small Finance Bank IPO GMP
| GMP Date | IPO Price | GMP | Estimated Listing Price |
|---|---|---|---|
| 03-11-2023 | ₹ 60 | ₹ 18 | ₹ 78 |
| 02-11-2023 | ₹ 60 | ₹ 22 | ₹ 82 |
| 01-11-2023 | ₹ 60 | ₹ 9 | ₹ 69 |
ESAF bank news
ESAF Small Finance Bank filed DRHP for an initial public offering on July 24, 2021. According to DRHP, this IPO consists of both a fresh issue of Rs 390.7 crore and an offer for sale (OFS) of Rs 72.3 Crore.
Should I invest in the ESAF Small Finance Bank IPO? Before deciding, it is important to understand the company and its business model to get a clear idea to make an investment decision.
What is ESAF Small Finance Bank?
ESAF Small Finance Bank is one of the leading small finance banks in India in terms of client base size, the yield on advances, Net Interest Margin, assets under management CAGR, total deposit CAGR, loan portfolio concentration in rural and semi-urban areas, and the ratio of microloan advances to gross advances.
The bank has a history of more than 25 years of primarily serving the unserved and underserved, with a focus on financial inclusion.
As of May 31, 2021, we had 550 Branches, 421 customer service centers, 12 business correspondents, 158 banking agents, and 327 ATMs in 21 states and two union territories and we served over 4.68 million customers.
ESAF Small Finance Bank Leadership team
ESAF Small Finance Bank was founded in March 2017 by Kadambelil Paul Thomas, Mereena Paul, and Jacob Samuel. Kadambelil is the promoter, Managing Director, and Chief Executive Officer of the Bank.
ESAF Small Finance Bank Competitor Analysis
The top competitors of ESAF Small Finance Bank include Fincare Small Finance Bank, AU Small Finance Bank, Kissht, Ujjivan Small Finance Bank, etc. Though many small finance banks are working in India now, looking at the addressable market in India, every bank will have enough market to capture.
ESAF Small Finance Bank Revenue and Profit
The company has a track record of growth in revenue and profits. Between Financial Years 2019 and Financial Years 2023, the revenue grew from ₹ 1,141 Crore to ₹ 3,141 crore. The net profit grew from ₹90.3 Crore to ₹ 302.33 Crore during the same time. The EPS remained stable at ₹ 2.37 in the Financial Year 2019 to ₹ 2.46 in the Financial Year 2021.
The Cost of Average CASA was 4.67%, 4.90%, and 4.43% for Fiscals 2021, 2020, and 2019 and the Cost of Average Term Deposits was 8.00%, 8.82%, and 8.76% for Fiscals 2021, 2020, and 2019. The bank has a strong brand and the bank can leverage the strength of the “ESAF” brand to rapidly grow the CASA.
The CASA of the bank increased from ₹ 5,850.24 million as of March 31, 2019, to ₹17,476.45 million as of March 31, 2021, representing a CAGR of 72.72%. The bank is focusing on increasing its CASA Ratio to reduce our Cost of Funds.
ESAF Small Finance Bank Financials
| Some Statistics/ Year Ended | March 31 | March 31 | March 31 |
| Year | 2021 | 2022 | 2023 |
| Total Revenue | 1,768.42 | 2,147.51 | 3,141.57 |
| Profit After Tax | 105.40 | 54.73 | 302.33 |
| Reserves and Surplus | 902.59 | 957.32 | 1,259.66 |
| Total Assets | 12,338.65 | 17,707.56 | 20,223.66 |
| Total Borrowings | 1,694.00 | 2,952.83 | 3,354.20 |
Objective Behind the ESAF Small Finance Bank Limited IPO
- The company will not receive any proceeds from the Offer for sale.
- From the proceeds of the Fresh Issue or Rs 390.7 crore, the bank is planning to utilize towards augmentation of the Bank’s Tier-I capital base to meet the Bank’s future capital requirements.
ESAF Small Finance Bank IPO Review – Should I invest?
- ESAF SMALL FINANCE BANK is one of the leading small finance banks in India with strong growth in revenue from operations.
- The net proceeds from this IPO will be utilized to improve the capital base of the bank which is good for the bank’s financial health.
- The company has a Robust financial performance over the last five years.
- Indian economy is expected to grow by 6.5% YoY in 2023 and 2024. The Indian economy is also expected to do well going forward and is likely to be the third-largest economy globally by 2030.
- This will create huge opportunities for banks and small finance companies to grow.
- Indian economy is expected to be over US$ 5 trillion by 2030 and the government of India is focusing on digitalization of all its activities.
- There are good opportunities for the company to play a strong role in Indian economic growth over the next decade.
- The bank has a strong brand name with 25 years of experience in the segment of the industry.
- It is wise to keep an eye on this company once it is listed on the exchanges.
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We endeavor to help you to understand different aspects of a company before you invest in the company’s IPO. Learn all company insights for investment in new companies in the Indian share market 2023. To know more information about company insights for investment, business overview of companies for investment, here are some suggested readings on company insights for investment –10 Best IPOs in 2022, Tata Motors Stock Price, Tesla Stock Price Prediction 2025, Highest Dividend paying stocks, 5 best upcoming IPOs in India, Identify golden crossovers stocks.
ESAF Small Finance Bank Contact Details
| ESAF Small Finance Bank Limited Building No. VII/83/8, ESAF Bhavan, Thrissur-Palakkad National Highway, Mannuthy, Thrissur 680 651 Phone: +91 487 7123 907 Email: investor.relations@esafbank.com Website: https://www.esafbank.com/ |
ESAF Small Finance Bank IPO Registrar
| Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: esaf.ipo@damcapital.in Website: https://linkintime.co.in/mipo/ipoallotment.html |
ESAF Small Finance Bank IPO Lead Manager(s)
| ICICI Securities Limited Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd) Nuvama Wealth Management Limited |