Fincare Small Finance Bank refile draft IPO papers with Sebi

Fincare Small Finance Bank has refiled preliminary papers with Sebi to raise funds through an Initial Public Offering IPO.This fresh filing comes as the capital markets regulators one-year approval given to the lender to launch an IPO expired last month.Under the rules, a firm gets one year to hit the primary market after receiving an approval from Sebi.

Fincare Small Finance Bank has refiled preliminary papers with Sebi to raise funds through an 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.

Under the rules, a firm gets one year to hit the primary market after receiving approval from Sebi. In case a firm fails to launch IPO during this period, it has to refile the prospectus with the Securities and Exchange Board of India (Sebi) seeking fresh clearance.

According to a fresh Draft, Red Herring Prospectus (DRHP) filed on Saturday, Fincare Small Finance Bank's IPO comprises a fresh issue of equity shares worth up to Rs 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. The bank would utilize net proceeds from the fresh issue towards augmenting its Tier-1 capital base to meet future capital requirements.

ICICI Securities, IIFL Securities, Ambit, Axis Capital, and SBI Capital Markets are the book-running lead managers to the issue. Equity shares of the lender will be listed on BSE and NSE.

The Bengaluru-based MFI-turned small finance bank started operations in July 2017. Before converting into a small finance bank, it largely conducted business from two entities namely Disha Microfin, which focused on the western region, and Future Financial Services, which focused in the South.

In May 2021, Fincare Small Finance Bank filed draft papers with Sebi to raise Rs 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.

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