Fincare Small Finance Bank has refined its DRHP for its Initial Public Offering (IPO) with market regulator Securities and Exchange Board of India (SEBI). This fresh filing comes as the capital markets regulator granted one-year nod to the lender to launch an IPO that ended last month. If a firm fails to launch an IPO within a period of one year, it will have to re-fill the prospectus with the regulator.
According to a fresh draft red herring prospectus (DRHP) filed on Saturday, Fincare Small Finance Bank’s IPO involves fresh issue of equity shares up to a maximum of Rs. 625 crore and Offer for Sale (OFS) for aggregation of 1.7 crore equity shares by a promoter and investors.
Promoters Fincare Business Services Ltd., and investors Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd., Omega TC Holdings Pte. Ltd.; Leapfrog Rural Inclusion (India) Limited,
In addition, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Limited, Tata Capital Financial Services Limited and Edelweiss General Insurance Company are the investors selling shares in the OFS.
The proceeds from the fresh issue of shares will be used to enhance the Tier-I capital base of the Bank to meet its future capital requirement. In May 2021, Fincare Small Finance Bank had filed draft papers with SEBI to raise 1,330 crore through IPO, The lender had received Sebi’s nod to go for an IPO in July last year, but did not launch it.
In May last year, Motilal Oswal Private Equity (PE) announced that it had taken a minority stake in Fincare Small Finance Bank through a secondary acquisition for approximately Rs 185 crore ($25 million). The investment was made through India Business Excellence Fund-III, a fund managed and advised by Motilal PE.
Bengaluru-based Fincare Small Finance Bank is a “digital-first” SFB with a focus on unbanked and under-banked customers, especially in rural and semi-urban areas. It was one of 10 applicants to have received Reserve Bank of India (RBI) approval for converting from a microfinance institution to an SFB under the guidelines for this new class of banks issued by the central bank in 2015.
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