Fincare Small Finance Bank a digital finance bank files DRHP to market regulator Securities and Exchange Board of India (SEBI) to raise Rs. 1330 Crores through IPO.
The offer consists of the fresh issue of Rs.300 Crores and offer for sale of Rs.1000 Crores.
They have special reservations for the employees who are willing to subscribe.
Investors in Fincare Small Finance Bank
In this month Motilal Oswal Private equity fund III invested in Fincare through their excellence fund for Rs. 185 Crores.
The bank is backed by many investors like Tata opportunities, Edelweiss Tokio Life Insurance, Kotak Mahindra Life Insurance, Leapfrog Investments, and Wagner.
While filing DRHP Fincare Business services had a 78.57% stake in Fincare Small Finance Bank and it will reduce eventually after the IPO as they will be benefitted from the Offer for sale.
What is the business of Fincare Small Finance Bank?
Fincare Small Finance Bank was made by bringing 2 NBFC’s together (Future Financial Services and Disha Microfin)
They are on the aim to make banks digital by bringing their products to doorstep, digital at delightful rates. Their product portfolio includes Loans against gold and property, Loans to micro businesses, cash overdrafts, recurring deposits, etc.
Objectives of Fincare IPO
Fincare Business services will get profited through the OFS and fresh issues will be used to expand their business in small cities. Some amount will also be used for general corporate purposes.
Let’s wait till Fincare files RHP as it will give more clear details about the IPO.