Chennai-based Equitas Holdings has received approval from capital markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The microfinance institution, which in September received in-principle approval from the Reserve Bank of India (RBI) for launching a small finance bank, aims to raise almost Rs 2,000 crore as foreign investors in the company are looking to sell their stake to ensure compliance with RBI’s ownership norms.
The share sale comprises a primary issuance of Rs 600 crore and an offer for sale by its existing investors. Investors who are selling part of their stake as part of the offer for sale include the International Finance Corp., part of the World Bank group, Sequoia Capital, Dutch development finance institution FMO, Helion Venture Partners, Aavishkaar, India Financial Inclusion Fund, Westbridge Ventures, Lumen Investment Holdings and Aquarius Investments. The Chennai-based company is planning to garner Rs 300 crore by selling shares to institutional investors ahead of the IPO.
Equitas’ main business is microfinance. The company also offers other services such as housing finance, vehicle finance, loans against property and business loans to small and medium enterprises.
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