Fincare SFB To File IPO Papers This Week
Bengaluru-based Small Finance Bank, a Fincare, is all set to file its Draft Red Herring Prospectus (DRHP) with SEBI, the market regulator, for an initial public offer (IPO). The IPO will comprise of a fresh issue and offer for sale by the existing shareholders. The issue is expected to be in the range of INR 1,200-Rs 1,400. Fincare SFB is the latest small finance bank (SFB) to announce plans to go for an initial public offering. It is backed by investors like TA Associates, True North, SIDBI, and Tata Opportunities Fund.
ICICI Securities, Ambit Capital, and Axis Capital lead managers for the round of IPO issue. ESAF Small Finance Bank, TPG-backed Jana Small Finance Bank, and Utkarsh Small Finance Bank have already filed DRHP with SEBI for IPOs and are expected to hit the market in the upcoming months.
Fincare SFB is one of the 10 microfinance institutions that received a go-ahead from RBI to convert itself into a small finance bank. Under RBI norms, small finance banks are required to list themselves within three years of reaching a net worth of INR 500 crore. Under these rules, Fincare SFB will have to list itself before September 2021.
Recently RBI has allowed the classification of priority sector lending for loans given by small finance banks to microfinance institutions for on-lending to individuals. This decision has been taken to address the pandemic-induced liquidity crisis.
