ESAF Small Finance Bank (ESAFSFB) shares make a strong debut on D-Street; here’s what investors may do

ESAF Small Finance Bank (ESAFSFB) shares made a strong debut on Dalal Street on Friday, November 10. The stock entered the listed space at Rs 71.9 apiece on BSE, a premium of 19.8 per cent over the upper end of the price range of the lender’s IPO. ESAF SFB shares began their journey on NSE at Rs 71 apiece, a premium of 18.3 per cent. 

The listing was in line with Zee Business Managing Editor Anil Singhvi’s expectations.   

At 10:30 am, the newly-listed stock changed hands at Rs 71.7 apiece on BSE and Rs 71.8 apiece on NSE—a premium of almost 20 per cent.

This week, the Kerala-based small finance bank concluded a Rs 463-crore IPO with an overall subscription of more than 73 times with strong participation from all categories of investors. 

EDITOR’S TAKE | Short-term investors may keep a stop loss below Rs 70

Market wizard Anil Singhvi suggests short-term investors keep a stop loss below Rs 70. He expected the ESAF Small Finance Bank stock to list in the range of Rs 72-78 apiece, which translates into a premium of 20-30 per cent from the upper end of the issue price range. 

Earlier, Singhvi recommended applying for the ESAF Small Finance Bank IPO for a good listing gain and for the long term.

Here are some of the key things to know about the ESAF Small Finance Bank IPO

Under the IPO, which was open for subscription from November 3 to November 7, ESAF SFB shares were available for bidding in a price band of Rs 57-60 apiece in multiples of 250, translating into Rs 14,250-15,000 per lot. The IPO comprised fresh issuance worth Rs 391 crore, and an offer for sale (OFS) worth Rs 72 crore by promoters and existing investors.

Here’s how various categories of investors responded to the issue: 

Investor category Reservation Subscription (No. of times the equity reserved)
Qualified institutional buyers (QIBs) Up to 50% 173.5
Non-institutional investors (NIIs) At least 15% 84.4
Retail individual investors  At least 35% 17
    73.2 (overall)

While up to 50 per cent of the issue was reserved for qualified institutional buyers (QIBs), at least 15 per cent was set aside for non-institutional investors (NII) or high net-worth individuals, and the remaining 35 per cent for retail individual investors.

Ahead of the public offer, ESAF Small Finance Bank raised Rs 135 crore from 11 anchor investors by allocating about 2.3 crore shares at Rs 60 apiece. 

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