Fincare Small Finance Bank refiles IPO papers with SEBI

Fincare Small Finance Bank has refiled its DRHP with market regulator ecurities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO). This fresh filing comes as the capital markets regulator’s one-year approval given to the lender to launch an IPO expired last month. The has to refile the prospectus with the regulator in case a firm fails to launch IPO during the one-year period.

According to a fresh Draft Red Herring Prospectus (DRHP) filed on Saturday, Fincare Small Finance Bank’s IPO comprises fresh issue of equity shares worth up to 625 crore and an Offer For Sale (OFS) aggregating up to 1.7 crore equity shares by a promoter and investors.

Those selling shares in the OFS are promoter Fincare Business Services Ltd, and investors Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd, Omega TC Holdings PTE Ltd; Leapfrog Rural Inclusion (India) Ltd,

Besides, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Ltd, Tata Capital Financial Services Ltd and Edelweiss General Insurance Company are the investors selling shares in OFS.

Proceeds from the fresh issue of shares will be used for augmenting the bank’s tier-1 capital base to meet its future capital requirement. In May 2021, Fincare Small Finance Bank had filed draft papers with Sebi to raise 1,330 crore through IPO. The lender had received Sebi’s go-ahead to float the IPO in July last year but didn’t launch it.

In May last year, Motilal Oswal Private Equity (PE) announced that it had picked up a minority stake in Fincare Small Finance Bank through a secondary acquisition worth around Rs185 crore ($25 million). The investment was through India Business Excellence Fund-III, a fund managed and advised by Motilal PE.

Bengaluru-based Fincare Small Finance Bank is a “digital-first” SFB with a focus on unbanked and under-banked customers, especially in rural and semi-urban areas. It was one of the 10 applicants to receive the Reserve Bank of India (RBI) approval to convert from a microfinance institution into an SFB under the guidelines for this new class of banks issued by the central bank in 2015.

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