About ESAF Share Price:-
On Friday, ESAF Small Finance Bank’s shares made a spectacular debut at Dalal Street. The stock was listed at Rs 71.90 on the BSE, which is 19% higher than its issue price of Rs 60 per share. The National Stock Exchange (NSE) listed the private lender at an 18% premium to Rs 71.
On the other hand, the ESAF listing has gone according to plan. Prior to going public, ESAF Small Finance Bank was asking investors for a 27 percent listing, commanding a premium of Rs 16 per share on the grey market. But when the issue closed for bidding, the premium in the unofficial market dropped from Rs 21 per share.
ESAF Small Finance Bank held an initial public offering (IPO) from November 3–7, with prices per share ranging from Rs 57–60, with a lot size of 250 shares. A fresh issue of Rs 390.70 crore and an offer-for-sale (OFS) of up to 6.51 crore shares by ESAF Financial Holdings, PNB MetLife, and Bajaj Allianz Life Insurance helped the Kerala-based lender raise a total of Rs 463 crore.
All investor categories demonstrated a strong demand for the issue, resulting in an overall subscription of 73.15 times. Qualified institutional bidders (QIBs), retail investors, non-institutional investors, and employees all had their designated portions booked 173.52 times, 84.37 times, 16.97 times, and 4.36 times, respectively.
The primary goal of ESAF Small Finance Bank is to offer loans and financial solutions to clients who live in rural and semi-urban areas. Microloans, retail loans, MSME loans, loans to financial institutions, and agricultural loans are among its product offerings. Its 700 outlets, 743 customer service centres, 481 business facilitators, and 581 ATMs are dispersed throughout 21 Indian states and union territories.
The IPO of ESAF Small Finance Bank was led by ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management. Link Intime India was designated as the issue’s registrar.
On Friday, ESAF Share Price made a big splash on the stock market when its shares were listed at Rs 71.90 on the BSE, which was 20% more than the share price that it was originally offered at, Rs 60. The stock opened at Rs 71 on the National Stock Exchange (NSE), 18% higher than its issue price.
The stock increased in value after listing, reaching Rs 74.15 on the BSE and Rs 74.30 on the NSE. ESAF SFB was quoting at Rs 73.65 at 10:01 AM, which was 23% more than its issue price. On the NSE and BSE, about 25 million equity shares have exchanged hands so far.
“The issue from ESAF Share Price is being offered at a P/BV of 1.5x, which seemes reasonable.
Therefore, investors who applied for the public offering for listing premium are advised to keep their stop loss at Rs 60 and wait for further upside, given this valuation and its better performance in terms of its CIR, NNPA, and NIM. The stock can also be held by those with a medium- to long-term outlook, according to Swastika Investmart’s Head of Wealth, Shivani Nyati. Investors responded enthusiastically to ESAF SFB’s initial public offering (IPO), with the issue being subscribed to 77 times. While the quota for non-institutional investors was subscribed 88.81 times, the portion designated for Qualified Institutional Buyers (QIBs) received 182.66 subscriptions. The portion set aside for regular, individual retail investors was given 17.86 subscription.
