NEW DELHI: Fincare Small Finance Bank has filed preliminary papers for a planned Rs 1,330 crore initial public offering (IPO) with capital market regulator SEBI.
The IPO comprises a fresh issue of equity shares of the bank worth 1330 crore and an offer for sale aggregating up to Rs 1,000 crore by the promoter entity Fincare Business Services Limited, according to the Draft Red Herring Prospectus (DRHP) filed by the company.
This offer also includes a reservation for subscription by employees.
The papers say that the bank will utilise the net proceeds from the fresh issue in augmenting its Tier-1 capital base to meet future capital requirements.
Furthermore, a small portion of these proceeds will be used to meeting expenses taken during the offer.
Under the terms of the RBI’s final approval and guidelines for small finance banks (SFB), the lender is required to list its equity shares on the Indian stock exchanges within a period of three years from reaching a net worth of Rs 500 crore.
The Bengaluru-based MFI-turned small finance bank started operations in July 2017. Before converting into a small finance bank, Fincare Small Finance Bank largely conducted its business from two entities Disha Microfin focused on the western region and the south-focused Future Financial Services.
Motilal Oswal Private Equity (PE) has also picked up a minority stake in the bank.