Shares of Equitas Small Finance Bank rose over 9% today after the lender raised Rs 550 crore from the government of Singapore, Singapore’s central bank and a host of local mutual funds in the qualified institutional placement of equities.
The stock climbed up to 9.45% to Rs 58.5┬а on BSE. The share trades higher than 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.
The stock has gained 18.8% in one year but has fallen 4% since the beginning of this year. Total 2 lakh shares of the firm changed hands amounting to a turnover of Rs 1.13 crore on BSE. Market cap of the firm rose to Rs 6,593 crore on BSE.
The stock opened at Rs 54 against the┬а previous close of Rs 53.45.
The share hit a 52-week high of Rs 76.75 on July 12, 2021 and a 52-week low of Rs┬а 45.35 on February 23, 2021. According to reports, the government of Singapore put in about Rs 155 crore while the Monetary Authority of Singapore invested Rs 36 crore in the QIP. Mutual funds Nippon Life India Trustee, SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund and HDFC Trustee Company invested the balance Rs 359 crore in the QIP.
Shares were sold at Rs 53.59 apiece amounting to a 5 per cent discount to the issue’s floor price of Rs 56.40.
The promoter of the bank – Equitas Holdings – owns 81.36 per cent while the balance 18.64 per cent lies with the public, according to the shareholding pattern at the end of December 2021.
The bank in October 2021 had said that it will raise up to Rs 1,000 crore through a qualified institutional placement (QIP) in order to fulfil the regulatory norms regarding minimum public shareholding.
As per RBI guidelines for SFBs, if a promoter holds more than 40 per cent stake in the subsidiary, it should be brought down to 40 per cent within a period of five years from commencements of banking operations. Here, the applicable date is September 4, 2021.
