'Reasonably' priced Equitas IPO is fully subscribed

The Rs 2,200 crore-IPO of Equitas Holdings, the first initial public offering in the current fiscal, was fully subscribed till afternoon trade on the last day of the offer today.

The IPO received total bids for 15,12,22,005 shares as against the issue size of 13,91,91,802 shares, generating a subscription of 1.09 times, according to the NSE data till 1300 hrs.

The company has raised Rs 652 crore from anchor investors.

Equitas Holdings, with a licence for a small finance bank, has fixed the price band at Rs 109-110 per share. The initial share sale programme will close today.

Equitas' IPO comprises fresh issue of shares aggregating Rs 720 crore and an offer for sale of up to 1,32,425,884 shares by existing shareholders, including P N Vasudevan, MD, and private equity stakeholders.

The IPO will bring down the company's foreign holding to 35 per cent, from the current 93 per cent.

As per the norms, foreign shareholding should be below 49 per cent to operate as a small finance bank.

Funds generated from the fresh issue will be used to develop IT infrastructure for the new bank and lending purposes, among others.

Axis Capital, ICICI Securities, HSBC and Edelweiss Financial Services are managing the company's IPO.