New Delhi: Equitas Small Finance Bank’s IPO is going to open for subscription on 20th October 2020. Subscription to IPO will cease on 22nd October 2020. The allocation of shares in the IPO is likely to be completed on October 27th.
For this IPO of Rs.517.60 crore, the price band has been fixed from Rs.32 to 33 per equity share. After the IPO, Equitas Holdings Limited’s stake in the bank will come down from 95.5% to 82%.
For investors, the lot size in this IPO is 450 equity shares, that is, a minimum of 450 equity shares can be bid and thereafter investors can bid in multiples of 450 equity shares.
As per RBI rules, the promoter of Equitas Small Finance Bank has to reduce its stake in the bank to 40%. Equitas Small Finance Bank is scheduled to complete five years of operations in September 2021.
New shares worth Rs.280 crore will be issued under the IPO. Also, 7.2 crore equity shares of the bank’s holding company Equitas Holdings Ltd will be allotted through Offer for Sale.
What is an IPO ?
Whenever a company or government proposes to sell some shares in to common people, this process is called Initial Public Offering (IPO).
That means, the government will put LIC’s IPO in the market for the common people. After this, people will be able to buy a stake in LIC through shares.