Equitas Holding IPO - Snapshot, Prospectus, Allotment, Listing

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Equitas Holdings Limited IPO will be available at the capital markets on April 5,2016 to raise 21.76 billion Rupees ($327 million) through an Initial Public Offering (IPO).

The IPO will see Equitas and its investors sell shares worth a little over Rs.2,200 crore.

The company got approval for its IPO from capital markers regulator Securities and Exchange Board of India (Sebi) on 29 December 2015. Equitas is one of the 10 companies that have been selected by the Reserve Bank of India to set up small finance banks, niche lenders aimed at helping small businesses and farmers get easier access to funding.

Total revenue of the company surged 56% to Rs.755.9 crore in 2014-15 from Rs.483.5 crore in the previous year, as per the data from the company’s draft IPO filings.

The founder of the company Mr. P.N. Vasudevan holds 3.17% stake in the company. He is likely to sell a part of his holding. Sequoia Capital, World Bank arm International Finance Corp, Dutch development finance institution FMO, Helion Venture Partners, Aavishkaar, India Financial Inclusion Fund, Westbridge Ventures, Lumen Investment Holdings and Aquarius Investments are the foreign investors also ready to sell shares in the IPO. These investors hold a 67.53% stake in the company.

Company profile

Equitas Holdings limited founded on June 22, 2007 based at Chennai in India. It is a diversified financial services provider facilitating to individuals micro and small enterprises. The company offers small loans to individuals and companies and also runs a housing finance business, further likely to merge the units to create the small finance bank.

Equitas operates in 11 states, one union territory and the NCT of Delhi. As of June 30, 2015, Equitas had 520 branches across India.

The firm offers below mentioned range of financial products and services:-

1) Microfinance:- The firm is responsible for lending since inception. It is proving loans ranging approximately between Rs. 5,000 and Rs.35,000 to its customers, depending on the loan cycle and mode of disbursement. It offers ecosystem of initiative to support borrowers.

2) Vehicle Finance:- The company focuses on funding used commercial vehicles and offers Segments serviced by moneylenders. The company belongs a few NBFCs in India operating in the used commercial vehicle finance business.

3) Housing Finance:- The company is helping to the customers (Informal salaried and self employed segment) who are seeking for housing finance for their home ownership.

4) Food Security:-It is set up for the purpose to provide food security and nutrition related information to low income households.

5) Corporate Social and Responsibilities: The company offers health services and runs programs for skill development through Equitas Gyan Kendra.

6) Education Initiatives:- It has a set up with a name of Equitas Gurukul to provide quality education at affordable cost among children of Equitas members.

Outlook of the Firm:-

Robust corporate governance standards and transparent operations leading to institutional confidence and customer goodwill
Comprehensive understanding and successful track record with underserved customer segment offering significant growth opportunities
Standardized operating procedures and efficient use of technology resulting in effective risk management and improved efficiencies
Diversified product offering and markets with significant cross-selling opportunities.
Experienced management and strong employee engagement
Commitment to social initiatives

Prospectus

See here Prospectus of Equitas holding IPO as filed with SEBI

Objects Of The Issue:-

1) To enhance the Capital base of the firm’s subsidiaries to meet their future capital requirements arising out of the growth in its business. Hence, the company propose to utilize Rs. 5200 million from the Net Proceeds.

2) General Corporate Purposes.

Summary Of Issue:

Issue Open:-	April 5, 2016 – April 7, 2016
Issue Type	100% Book Built Issue IPO
Issue Size (Shares)	Equity Shares of Rs. 10
Issue Size in (Value)	Rs. 2175 Crore
Face Value	Rs. 10 Per Equity Share
Issue Price	Rs. 109 to Rs. 110 Per Equity Share
Market lots	–
Minimum Order Quantity	–
Listing At	BSE, NSE

The public offer includes:-

Particular	Number Of Equity Shares
Fresh Issue of	Equity Shares aggregating up to Rs. 720 crore
Offer For sale of	Up to 130,825,886 Equity Shares

Promoters Of the Company:-

The Company is a professionally managed company and does not have an identifiable promoter in terms of the SEBI Regulations and the Companies Act, 2013. Therefore, the company does not have a’ promoter group in terms of the SEBI Regulations.

Financials:-

Particulars	For the year/Period ended (Rs. in Million)
Financial Year	30-June-15	31-Mar-15	31-Mar-14	31-Mar-13	31-Mar-12
Total Equity & Liabilities	9,589.00	9,570.60	6,325.96	4,362.99	2,975.98
Total Assets	9,589.00	9,570.60	6,325.96	4,362.99	2,975.98
Total Revenue	24.03	89.17	28.84	26.85	15.45
Total Expenses	10.52	51.05	16.04	9.48	26.74
Profit After Tax (PAT)	8.19	16.86	4.74	10.57	(63.53)