Kerala-based Esaf Small Finance Bank Ltd. is embarking on a new phase of its journey with its initial public offering (IPO) starting on Friday, November 3. The last day of the subscription is Tuesday, November 7. The issue price has been fixed at Rs. 57-Rs. 60 per share.

Investors can apply for a lot of 250 equity shares and multiples thereof. The company aims to raise Rs. 463 crore with the IPO, which includes a fresh issue of Rs. 390.70 crore and an offer for sale (OFS) of Rs. 72.30 crore. The amount raised via the fresh issue will be used to increase the bank”s tier-1 capital base.

Founded on March 10, 2017, ESAF Small Finance Bank has become one of the top five small finance banks (SFBs) in the country in terms of asset under management (AUM). Over the years 2021-2023, the bank surpassed many of its competitors and became the fourth-highest SFB in terms of AUM and deposit growth. The bank”s AUM currently stands at Rs. 16331.27 crore, which is a 39% CAGR growth.

The bank has consistently recorded the second-highest year-on-year AUM growth in the three months of fiscal 2024 and currently holds deposits of Rs. 14665.63 crore, which is a 28% CAGR growth.

ESAF”s product portfolio includes advances and deposits (current accounts, savings accounts, term deposits, and recurring deposits). It lends micro loans (comprising microfinance loans and other micro loans), retail loans (such as gold loans, mortgages, personal loans, and vehicle loans), MSME loans, loans to financial institutions, and agricultural loans.