Fincare Small Finance Bank will be making an initial public offer (IPO) aggregating up to ₹1,330 crore, comprising fresh issue aggregating up to ₹330 crore and an offer-for-sale aggregating up to ₹1,000 crore by the promoter selling shareholder.
Fincare SFB proposes to utilise the net proceeds from the fresh issue towards augmenting its Tier-1 capital base to meet its future capital requirements, according to the bank’s Draft Red Herring Prospectus (DRHP).
The bank may, in consultation with Managers (to the IPO), consider a pre-IPO Placement aggregating up to ₹200 crore, the DRHP said.
Fincare SFB’s promoter, Fincare Business Services Ltd, owns 78.59 per cent stake of the bank’s issued, subscribed and paid-up equity share capital.
In terms of the RBI’s SFB Licensing Guidelines, the bank is required to list its equity shares on the stock exchanges within three years from reaching a net worth of ₹500 crore.
As per the DRHP, Fincare SFB has a network of 528 banking outlets, 219 business correspondent outlets and 108 ATMs spread across 16 States and three Union Territories, covering 192 districts and 38,809 villages as of December 31, 2020.
The bank’s network is particularly strong in south (Tamil Nadu and Karnataka) and west India (Gujarat), it added.
According to the prospectus, the bank had a gross loan portfolio and total deposits of ₹5,548 crore and ₹5,277 crore, respectively, as at December-end 2020.
Following the RBI granting Disha Microfin Ltd (DML) a licence on May 12, 2017 to carry on small finance bank business in India, its name was changed to Fincare Small Finance Bank.