Fincare Small Finance Bank has re-stated its DRHP for its initial public offering (IPO) with securities from the market regulator and the Exchange Board of India (SEBI). This new filing comes as the year-long capital markets regulator’s approval given to the lender to launch an IPO expired last month. It must resubmit the prospectus to the regulator if a company fails to go public within the one-year deadline.
Fincare Small Finance Bank’s IPO will include a new issue of shares worth up to €625 crore and an Offer to Sell (OFS) pooling up to 1.7 crore of shares from a promoter and investors.
Those selling shares in OFS are promoter Fincare Business Services Ltd and investors Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd, Omega TC Holdings PTE Ltd; Leapfrog Rural Inclusion (India) Ltd,
Also, Kotak Mahindra Life Insurance Company, Edelweiss Tokyo Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Ltd, Tata Capital Financial Services Ltd and Edelweiss General Insurance Company are the investors selling shares in OFS.
Proceeds from the new share issuance will be used to increase the Bank’s Tier 1 capital base to meet its future capital needs. In May 2021, Fincare Small Finance Bank submitted draft papers to Sebi for an increase €1,330 crore through IPO. The lender had given Sebis the green light to go public in July last year, but didn’t launch it.
In May last year, Motilal Oswal Private Equity (PE) announced it had acquired a minority stake in Fincare Small Finance Bank through a secondary acquisition valued at around Rs 185 billion (US$25 million). The investment was made through India Business Excellence Fund-III, a fund managed and advised by Motilal PE.
Bengaluru-based Fincare Small Finance Bank is a digital-first SFB with a focus on unbanked and underbanked clients, particularly in rural and semi-urban areas. It was one of 10 applicants to receive the approval of the Reserve Bank of India (RBI) to convert from a microfinance institution to an SFB under the guidelines issued by the Central Bank in 2015 for this new class of banks.
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