Kolkata: Equitas Small Finance Bank’s initial public offer (IPO) will be done once normalcy in business operations is restored after the delay caused by disruptions due to the spread of Covid-19 pandemic, the promoter of the bank Equitas Holdings NSE 1.88 % said Monday.
“We have enough time for completing the IPO. But we would like to do it as quickly as we can,” managing director PN Vasudevan told ET.
Subsequently on February 28 this year, it received in principle approval from Sebi for an IPO worth Rs 550 crore and an offer-for-sale (OFS) of 8 crore equity shares by the holding company. The approval remains valid for a year.
Equitas Holdings, which is a listed entity, reported a 25% fall in consolidated net profit at Rs 52.5 crore in first quarter to June 30. Its net profit was Rs 70.27 crore in the year ago period.
Total income of the company, however, rose to Rs 787 crore from Rs 662.5 crore over the same period.
“We are very clear that we will support our borrowers in the time of crisis,” the MD said, adding that small and micro borrowers who form the customer base for Equitas would eventually repay their loans even if there is some delay.
The bank’s gross non-performing assets ratio improved to 2.68% at the end of June compared with 2.73% a year back. The company has provided Rs 45 crore in June quarter to cover Covid-related risk.
Microfinance and vehicle finance contribute 24% each to its outstanding loans of Rs 15367 crore with small business loans share at 41%. Corporate loans and others contribute the rest.
Its board has proposed an interim dividend of Rs 1 per equity share of Rs 10 each for the current financial year