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Fincare SFB to file IPO papers this week

fincare ipo

Bengaluru-based Fincare Small Finance Bank is set to file its Draft Red Herring Prospectus (DRHP) with the market regulator for an initial public offer (IPO). The IPO will include a fresh issue and offer for sale by the existing shareholders. 

The issue is expected to be in the range of INR 1,200-Rs 1,400. 

Fincare SFB is the newest small finance bank (SFB) to announce plans to launch an initial public offering. It is supported by investors like TA Associates, True North, SIDBI, and Tata Opportunities Fund. 

ICICI Securities, Ambit Capital, and Axis Capital have been appointed as lead managers for the round of IPO issue. 

ESAF Small Finance Bank, TPG-backed Jana Small Finance Bank, and Utkarsh Small Finance Bank have already filed DRHP with SEBI for IPOs and are expected to hit the market in the forthcoming months.

Fincare SFB is one of the 10 microfinance institutions that received approval from RBI to turn itself into a small finance bank. Under RBI standards, small finance banks are needed to list themselves within three years of attaining a net worth of INR 500 crore. Under these rules, Fincare SFB will have to list itself before September 2021. 

Recently RBI has approved the classification of priority sector lending for loans given by small finance banks to microfinance institutions for on-lending to individuals. This decision has been taken to address the pandemic-induced liquidity crisis. 

It takes a lot of patience and perseverance for a company to reach a stage where it can plan an IPO. Fincare SFB has huge potential and I hope the IPO is successful.

Shishir Gupta, Founder and CEO, StartupLanes

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