ESAF Small Finance Bank raises Rs 4.64 bn via private placement of shares Stock Market Advice
ESAF Small Finance Bank has completed private placement of its common stock worth Rs 4.64 billion. PNB MetLife India Insurance Co Ltd, Bajaj Allianz Life Insurance Co Ltd and ICICI Lombard General Insurance Co Ltd, along with seven other investors, took a stake in the small finance bank. PNB MetLife India Insurance and ESAF Multi-State Co-operative took a stake of 4.99 per cent each in the bank. Bajaj Allianz Life Insurance and ICICI Lombard General Insurance picked up 4.08 per cent and 1.45 per cent stake, respectively. ICICI Securities Ltd served as the advisor for the private placement. Polymath Advisors, Mumbai, also associated with ESAF SFB in these transactions. With the infusion of additional capital, the net worth of the bank has increased to Rs 8.07 billion and the CRAR to 27.9 per cent. The proceeds from the private placements will be used for general corporate purposes, capital management and to support future growth. ESAF has collected Rs 3 billion worth of deposits in the first half of the financial year and has added 2.5 million customers. At present, the bank has 422 banking outlets, which include 297 ultra-small branches and 125 new retail banking outlets spread across 11 states in India.
ARTICLE SOURCE: BS