Fincare Small Finance Bank files papers for IPO

Fincare Small Finance Bank Ltd., a ‘digital-first’ small finance bank (SFB) with a focus on unbanked and under-banked customer segments has filed Draft Red Herring prospectus with market regulator Security Exchange Board of India (SEBI) to tap the capital market.

It plans to raise funds via Initial Public Offerings through issue of equity share capital of face value ₹10 each comprising fresh issue aggregating up to ₹625 crore and offer for sale aggregating up to 17,000,000 equity shares by promoter and investor selling shareholders. 

The bank proposes to utilise the net proceeds of the fresh issue towards augmentation of its Tier-I capital base to meet its future capital requirements which are expected to arise out of growth in its assets, primarily for loans/advances and investment portfolio and to ensure compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time.

The offer for sale comprises of up to 1,49,34,779 equity shares by Fincare Business Services Ltd. (Promoter Selling Shareholder) and up to 4,71,754 equity shares by Wagner Ltd, up to 444,140 equity shares by True North Fund V LLP, up to 4,30,842 equity shares by Indium IV (Mauritius) Holdings Ltd., up to 2,23,955 equity shares by Omega TC Holdings PTE. Ltd.; up to 1,30,787 equity shares by Leapfrog Rural Inclusion (India) Ltd.; up to 1,26,151 equity shares by Kotak Mahindra Life Insurance Company Ltd.; up to 1,16,981 equity shares by Edelweiss Tokio Life Insurance Company Ltd., up to 45,710 equity shares by Bharti AXA Life Insurance Company Ltd up to 35,092 equity shares by Silver Leaf Oak (Manutius) Ltd.; up to 20,752 equity shares by Tata Capital Financial Services Ltd. and up to 19,237 equity shares by Edelweiss General Insurance Company Ltd. (Investor Selling Shareholders), as per the filing.