Equitas Small Finance Bank IPO: What retail and other investors should know

In a major development, Equitas Small Finance Bank has received market regulator Sebi's nod for its initial public offer (IPO). Securities and Exchange Board of India's (Sebi) observations are necessary for any company to launch public issues such as initial public offer, follow-on public offer and rights issue. Here are key things to know about Equitas Small Finance Bank IPO:-

- The offer consists of a fresh equity worth Rs 550 crore and an offer for sale of 8 crore equity shares

- The observation letter (indicating a go-ahead to the IPO) was issued on February 28, 2020

 -Equitas Small Finance Bank proposes to utilise the net proceeds from the offer towards augmenting its Tier I capital base to meet future capital requirements

- The equity shares are proposed to be listed on BSE and NSE.

 - JM Financial, Edelweiss Financial Services and IIFL Securities are managing the offer.

Meanwhile, mMortgage financier Home First Finance company on Tuesday said it has received approval from market regulator Securities and Exchange Board of India (Sebi) to raise Rs 1,500 crore through initial public offering (IPO).

The IPO consists of fresh issue of up to Rs 400 crore and an offer for sale (OFS) of up to Rs 1,100 crore by selling shareholders, the company said in a release. The promoters and investors who are selling their stake through OFS route are True North Fund V LLP, Aether (Mauritius), Bessemer India Capital Holdings II Ltd, P S Jayakumar, Manoj Vishwanathan and Bhaskar Chaudhry.

The company had filed draft red herring prospectus (DRHP) with Sebi on November 28, 2019.  The equity shares will be listed on National Stock Exchange (NSE) and BSE.

The company intends to utilise the net proceeds towards augmenting its capital base to meet its future capital requirements, arising out of growth of its business and assets and to receive the benefits of listing of the equity shares on the stock exchanges, according to the release.