Thursday, 31 March 2016

Equitas Holdings Limited - IPO

Issue Period: Tuesday, 05 Apr’ 2016 to Thursday, 07 Apr’ 2016 | Price Band : Rs 109 to Rs 110

IPO Details:
Issuer Equitas Holdings Limited
Issue Opening Date
Tuesday, 05 Apr’ 2016
Issue Closing Date
Thursday, 07 Apr’ 2016
Price Band
Rs 109 to Rs 110
Lot Size
135 Equity Shares and in multiple thereafter
Issue Size
Rs 2163.44 Cr to Rs 2176.68 Cr
Issue allocation
QIB - 50%, Non-Institutional - 15%, Retail - 35%
Proposed to be listed on BSE & NSE
Axis Capital Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Private Limited and ICICI Securities Limited
Karvy Computershare Private Limited

Competitive Strengths:
  • Robust corporate governance standards and transparent operations leading to institutional confidence and customer goodwill
  • Comprehensive understanding and successful track record with underserved customer segment offering significant growth opportunities
  • Standardized operating procedures and efficient use of technology resulting in effective risk management and improved efficiencies
  • Diversified product offering and markets with significant cross-selling opportunities
  • Experienced management and strong employee engagement
  • Commitment to social initiatives
Company Profile
Equitas Holdings Ltd is a diversified financial services provider focused on individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels. Companies focus customer segment includes low income groups and economically weaker individuals operating small businesses, as well as MSEs with limited access to formal financing channels on account of their informal, variable and cash-based income profile. These customers require various financial products including small, short-term business loans as well as relatively large, longer tenor enterprise and home loans. Equitas offer a range of financial products and services that address the specific requirements of these customer segments that take into account their income profile, nature of business and kind of security available.

Microfinance- Company microfinance business provides loans ranging approximately between Rs 2,000 and Rs 35,000 to their customers, depending on the loan cycle and mode of disbursement. Companies microfinance business is conducted through their wholly-owned subsidiary EMFL. As of March 31, 2015, EMFL was the fifth largest microfinance company in India in terms of gross loan portfolio (Source:CRISIL MF Opinion).

Vehicle Finance- Equitas used commercial vehicle finance customers are typically first-time formal financial channel borrowers purchasing commercial vehicles. Companies customers also include small fleet operators. Equitas holding ltd is among a few NBFCs in India operating in the used commercial vehicle finance business.

Micro and Small Enterprise (MSE) Finance- Company provide asset backed financing primarily focused on self-employed individuals operating micro enterprises and small enterprises, typically in urban and semi-urban locations. Micro enterprises and small enterprises are internally classified as such on the basis of their loan eligibility.

Housing Finance- Company focus on providing micro-housing and affordable-housing loans to selfemployed individuals who have limited access to loans from banks and larger housing finance companies.

Objects of the Offer: The Issue comprises of a Fresh Issue and an Offer for Sale.
    Offer for Sale: Each of the Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale. All expenses in relation to the Issue will be shared amongst The Company and Selling Shareholders in accordance with applicable law.

    Fresh Issue: The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding of the following objects:

  • Investment in certain of their Subsidiaries, namely, EFL, EMFL and EHFL, to augment their capital base to meet their future capital requirements arising out of growth in our business (the “Investment”); and
  • General corporate purposes.
# For the purpose of information only, Invest only after referring to the Red Herring Prospectus dated 23rd March 2016.

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