Kerala-based ESAF Small Finance Bank on Tuesday set the price band for its Rs 463-crore initial share sale at ₹57-60 apiece. The issue is opening for public subscription on November 3 and will conclude on November 7. The anchor investors’ allocation will be done on November 2.

Considering the upper end of the price band, the small finance bank aims to raise ₹463 crore from the maiden public offer. Investors can bid for a minimum of 250 equity shares and in multiples thereafter.

The of ₹391 crore and an offer for sale (OFS) of ₹72 crore by the selling shareholders.

Under the OFS, promoter selling shareholder ESAF Financial Holdings will offload stake worth ₹49 crore and other selling shareholders PNB MetLife and Bajaj Allianz Life make up for the remaining OFS portion.

The offer is being made through the book building process, where about 50% of the IPO has been set aside for qualified institutional buyers, 15% for non-institutional investors and the remaining 35% for retail investors.

The IPO includes a reservation of ₹12.5 crore worth of shares for the bank’s employees, who will get those shares at a discount of ₹5 each on the final issue price.

The capital raised from the fresh issue will be utilised towards augmenting the Bank’s Tier- I capital base to meet its future capital requirements.Financial Performance

ESAF has posted a healthy financial performance in the past years and the first quarter of current fiscal, with improving asset quality performance.

The bank’s gross non-performing assets fell by 451 basis points year-on-year to 1.65% and net non-performing assets declined 297 basis points on-year to 0.81% at the end of June FY24 quarter.

The net profit for the quarter ended June FY24 climbed 22.6% to ₹130 crore and net interest income rose 30.5% to ₹585.5 crore, compared to corresponding period last fiscal.

While the small finance bank’s operations are spread out across India, the business is concentrated in South India, particularly in Kerala and Tamil Nadu.

ICICI Securities, DAM Capital Advisors and Nuvama Wealth Management are the book-running lead managers to the IPO, while Link Intime India is the registrar.

The small finance bank is expected to finalise the basis of allotment of IPO shares by November 10, and will credit the equity shares to demat accounts of successful investors by November 15. The equity shares are proposed to be listed on BSE and NSE.