ESAF SFB mops up Rs 162 crore via pref allotment of shares

According to the unaudited results, the bank has achieved a year-on-year (y-o-y) growth of 25.86% in gross business during FY21.

ESAF Small Finance Bank on Friday said it has raised Rs 162 crore through preferential allotment of shares. A total of 2.18 crore shares were allotted to certain investors in the HNI category, including some existing investors, leading to a dilution of approximately 5%, at Rs 75 per share.

The shares were priced at 2.64 times pre-issue and 2.45 times post-issue of its book value as of September 30, 2020, sources at ESAF said.

“The additional capital raised will strengthen the capital adequacy by about 250 basis points and will support our ambitious growth plan set for FY22. The overwhelming response shown by our investors during these tough times gives us the confidence to aim big. Considering the comfortable capital position and subdued market outlook on BFSI stocks, we had decided to postpone the IPO scheduled for the last financial year,” said K Paul Thomas, MD & CEO. The bank has reported a stupendous growth during these challenging times, he added.

According to the unaudited results, the bank has achieved a year-on-year (y-o-y) growth of 25.86% in gross business during FY21. It has reported a 28.04% y-o-y rise in total deposits to Rs 9,000 crore and advances crossed Rs 8,413 crore at a growth of 23.61% as on March 31, 2021. Total business crossed Rs 17,412 crore, against Rs 13,835 crore in the year-ago period. “The results show our commitment to our stakeholders. We are also thankful for the resilience shown by our customers” Thomas said. He added that the CASA growth was impressive at 82%, thanks to the focused strategies adopted by the bank.