Tepid debut for Equitas Small Finance Bank — lists at a 6% discount over the issue price
Nov 2, 2020, 10:14 IST
- The Equitas Small Finance Bank shares listed at ₹31, which is at a 6% discount to the IPO price band set at ₹32-33 per share.
- The total market cap of ESFB rose to ₹3,443.21 crore at 10:05 am.
- Within minutes after listing, the shares of Equitas Small Finance Bank shed nearly 3% of their value and were trading at ₹30.15 apiece at 10:05 am, in a volatile market.
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It was a subdued listing for the ₹518 crore IPO of the mass-market focused Equitas Small Finance Bank (ESFB) on the bourses today. The Equitas Small Finance Bank shares, listed at ₹31, which is at a 6% discount to the IPO price band set at ₹32-33 per share. Within minutes after listing, the shares of Equitas Small Finance Bank shed nearly 3% of their value and were trading at ₹30.15 apiece at 10:05 am, in a volatile market.
The total market cap of ESFB rose to ₹3,443.21 crore at 10:05 am. A total traded quantity of 4.48 lakh shares changed hands on BSE, amounting to a turnover of ₹1.38 crore. The company will trade with the symbol of 'EQUITASBNK' on the Indian stock exchanges.
Tepid listing was already on the cards
The investor pessimism for ₹518 crore IPO of Equitas Small Finance Bank was evident ahead of the listing — the company clocked in the lowest subscriptions compared to other IPOs in 2020 so far. The IPO was subscribed 2 times on the last day of bidding, and the non-institutional Investor portion of the IPO wasn't even fully subscribed.
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Angel Broking also said in its IPO note that the fresh formation of bad loans from moratorium books would keep provisions high and return ratios compressed, and could pose a concern for Equitas SFB. "We believe investors should wait for price discovery before making any investment decision," they added.
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