Fincare Small Finance Bank IPO: Fincare Small Finance Bank has started preparations again to bring IPO. Small Finance Bank has again submitted the draft prospectus (DRHP) with the market regulator SEBI (SEBI). Earlier, the approval for one year from the regulator expired last month, due to which the draft prospectus had to be filed again. Actually, if a company fails to bring an IPO within a year of approval, then it has to apply again.
OFS will come for 1.7 crore shares
According to the fresh draft red herring prospectus (DRHP) filed on Saturday, the IPO of Fincare Small Finance Bank will include fresh equity shares of Rs 625 crore and an offer for sale (OFS) of 1.7 crore equity shares by promoters and investors.
These investors will sell shares
Promoter of Fincare through OFS and Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd, Omega TC Holdings PTE Ltd; Investors like Leapfrog Rural Inclusion (India) Ltd will sell the shares. In addition, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Ltd., Tata Capital Financial Services will also sell their shares. These midcap stocks are the favorite of Mutual Funds,thousands of crores at stake, know the details
Where the money will be used
The proceeds from the issue of fresh shares will be used by the bank to increase its Tier-I capital base to meet its future capital requirements. In May 2021, Fincare Small Finance Bank submitted draft papers to SEBI to raise Rs 1,330 crore through IPO.
In May last year, Motilal Oswal Private Equity had bought minority stake in Fincare Small Finance Bank for Rs 185 crore through secondary acquisition. The investment was made through the India Business Excellence Fund-III, a fund managed and consulted by Motilal PE.