ESAF Small Finance Bank IPO, GMP, Lot Size, Subscription, Buy or Not

ESAF Small Finance Bank IPO, GMP, Lot Size, Subscription, Buy or Not

All those having an eye on ESAF small finance bank IPO can now bid on it from 3rd November till 7th November. Interested candidates must know that the price has been fixed from Rs.57 to Rs.60 per equity share of face value of Rs.10. Here, it is important to mention that the lot size of ESAF Small Finance Bank is 250 equity shares and after that in its multiples. 

Before investing, the buyers and investors should take heed of the following criteria of ESAF Small Finance Bank IPO:

• For Qualified Institutional Buyers (QIB)- Reserved not more than 50% of the offer
• For Non-Institutional Investors (NII)- Reserved not less than 15% of the offer
• For Retail Investors- Reserved not less than 35% of the offer

So, whether you fall under the category of QIB, NII, or retail investor, make sure you know the offerings from the ESAF Small Finance Bank IPO. Other than this, if you are bidding in the employee reserve portion, you’ll get a discount of Rs.5 per equity share. All these considerations should be kept in mind while questioning whether ESAF small finance bank IPO should I buy.

Tentative Schedule

Let’s look at the important ESAF small finance bank IPO date.  

• Date of Opening: Friday, November 3, 2023
• Date of Closing: Tuesday, November 7, 2023
• Expected Allotment: Friday, November 10, 2023
• Refunds Allotment: Monday, November 13, 2023
• Shares credit to Demat: Wednesday, November 15, 2023
• Listing: Thursday, November 16, 2023
• UPI mandate confirmation cutoff time: 5 PM on November 7, 2023

Thus, keeping an eye on these dates will help to clear the ESAF small finance bank IPO subscription status. 

ESAF small finance bank IPO review 

On 2nd November, ESAF Small Finance Bank IPO raised Rs.135.15 crores from anchor investors. As per the reports shared with the exchanges, it allocated 2,25,24,998 equity shares to anchor investors at Rs.60 per share. 

Many national as well as international institutions participate in anchors such as Kotak Mahindra Life Insurance, SBI General Life Insurance, Ananta Capital Ventures Fund, ICICI Prudential Life Insurance, Alchemie Ventures Fund, BNP Paribas Arbitrage, Copthall Mauritius, Founders Collective Fund, ACM Global VCC Fund, Edelweiss Tokyo Life Insurance, and Astorne Capital VCC.

What is ESAF Small Finance Bank IPO GMP?

GMP refers to Grey Market Premium. Before listing, the IPO is traded to the grey market, which is unregulated and unofficial. The rate or price with which it is traded is called grey market premium or GMP. 

It depicts the status of a company’s IPO and helps predict how it may react on the listing day. Usually, GMP falls under the following:

• Positive GMP- If GMP is positive, it tells that IPO is likely to be at a profit. 
• Negative GMP- It depicts the IPO is likely to be at a discount. 

Even though GMP gives a fair idea, it is not the only criterion to be followed while deciding on investment. It is solely because IPO GMP is subject to extreme volatility. So, it should not affect your decision on whether ESAF small finance bank IPO apply or not.

Talking about the ESAF Small Finance Bank IPO GMP price, it is Rs.20, last updated on Nov 4th, 2023. Since GMP price is volatile and keeps fluctuating, this price is calculated based on the last 13 sessions, wherein the lowest price was Rs.0 and the highest, Rs.22.

Since the price band is 60.00, the listing price, which includes the current GMP and cap price, came out to be Rs.80. Thus, ESAF small finance bank IPO GMP percentage is expected to be 33.33% gain or loss per share.

So, all those confused about whether ESAF small finance bank IPO buy or not should study all these points before making the decision. 

First Day of Bidding Session 

As per the reports, the first day of the bidding session, that is, 3rd November, went really well, and the company got many healthy responses from the investors. So, if you are still confused about whether ESAF small finance bank IPO good or bad, keep an eye on the biddings and decide accordingly. 

Also Read Twitter Status

ESAF Small Finance Bank IPO - Something has been left on the Table

Dates : 03 Nov - 07 Nov
IPO Size: 463 Crore ₹
Price Band : 57 - 60 (GMP Heard 25 ₹)

Retail Lot : 250 Share, Application Amount : 15,000, Number of Applications : 1,05,116

Small HNI Lot : 3,500 Share,…

— G K AGARWAL (@ipo_agarwal) November 3, 2023

Interesting Facts on ESAF Small Finance Bank IPO

• Investors can bid on ESAF Small Finance Bank IPO for a minimum of 250 shares and after that in its multiples.

• It focuses more on unbanked and under-banked customer segments from rural and semi-urban areas.
• The company has witnessed a significant rise in total income (34%) and net profit (22%) for the three months ended in June 2023. At the same time, the net income increased by 30%, making it Rs 585 crore. 
• Assessing the superlative return ratios in the last few years, market analysts are recommending investors to subscribe. 

ALSO READ: Indegene IPO GMP, Price, Lot Size, Date and Subscription

Frequenly Asked Questions

1. Is ESAF Small Finance Bank listed?

Yes, ESAF Small Finance Bank is listed on BSE and NSE. The timeline, as well as the tentative listing schedule, is also mentioned to be Thursday, November 16, 2023. The band price is set at Rs.57 to Rs.60 per share.

2. What does high GMP indicate?

GMP depicts the demand for the IPO. If the GMP is high, it indicates that the demand for the IPO is also high. 

3. How safe is ESAF Small Finance Bank?

ESAF Small Finance Bank is RBI-approved for inclusion in the second schedule of the RBI Act 1934 within two years of its commencement of operations. It thus became a Scheduled Bank in December 2018. With over 4 100 employees, this bank is safe when it comes to investment. 

ALSO READ: Bharti Hexacom IPO, GMP, Price, Date and Subscription- All you need to know

Conclusion 

As the IPO of ESAF Small Finance Bank keeps getting a healthy response from investors, it won’t be an exaggeration to say that this bidding will turn out to be successful for the company. It would be highly interesting to note the result of this five days bidding program and whether the company is able to raise the expected Rs.463 crores via IPO.