Fincare Small Finance Bank refiles draft papers for IPO
时间:2024-06-26 13:22:58 阅读(143)
By Shashank Didmishe
Bengaluru-based Fincare Small Finance Bank on Monday refiled the draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for its initial public offering. The new offer consists of a fresh issue of shares of up to Rs 625 crore and an offer-for-sale (OFS) of up to 1.7 crore shares by promoter and institutional investors.
In the previous draft papers the lender had filed in 2021, the company was planning to raise Rs 330 crore via a fresh issue and the promoter Fincare Business Services was the sole selling shareholder with an OFS of Rs 1,000 crore.
The bank plans to use the IPO proceeds for strengthening its tier-I capital base to meet future capital requirements. The amount raised by the bank from the fresh proceeds will be deployed in FY23. The bank’s capital adequacy ratio as of March 31 stood at 22.32%, of which tier-I was 19.48%.
“In the coming quarters, our bank plans to significantly grow its loan advances which would require tier-I capital to comply with the applicable capital adequacy regulations,” the lender said in a draft papers.
The bank’s gross loan portfolio stood at Rs 7,599 crore as of March 31. The lender positions itself as a ‘digital-first’ bank and had started operations as microfinance lender in 2013 and received licence to operate as a small finance bank from the Reserve Bank of India (RBI) in 2016. The bank then changed its name from Disha Microfin to Fincare Small Finance Bank after receiving RBI approval.
The bank’s total deposits as of March 31 stood at Rs 6,455 crore, with current account, savings account (CASA) ratio at 36.30%. The bank plans to increase its deposit base by focusing on CASA and retail deposits.
ICICI Securities, Axis Capital, SBI Capital Markets and Ambit Pvt Ltd are the book running lead managers to the issue.
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- d that milk prices are unlikely to witness spikes in the coming months due to cooler temperature in April and parts of May, which has delayed the onset of ‘lean’ season, when milk production usually drops.
Retail inflation in milk was reported at 8.85% in May 2023. The milk inflation has remained elevated at over 6% since August 2022. Despite India being the largest milk producer since 1998, the commodity has been the second biggest factor after cereals such as rice and wheat in driving up retail inflation in the last fiscal.
Milk has the second highest weight in the food and beverages basket of the consumer price index at 6.61%, a notch lower than cereals and products with a 9.67% weight. Organised players, including Mother Dairy and Amul, hiked prices multiple times in the last one year citing higher fodder cost, robust demand and some impact due to reports of lumpy skin disease.
Industry sources said feed cost, which has a share of more than 65% in the cost of production of milk, has increased to Rs 20/kg from Rs 8 a year ago. The finance ministry in April had attributed the elevated milk inflation to a demand supply mismatch and said it could be one of the factors apart from volatile international crude oil prices and constrained supplies of milk would influence the country’s inflation trajectory.
“Milk production has been impacted by a lumpy skin disease infecting millions of cattle in late 2022,” the ministry said in the monthly economic review, adding that the vaccination drive against the disease is expected to curb the spread and immune the cattle against the skin disease.
According to official data, currently India is the world’s largest milk producer, and has a share of 23% in global milk production. For the first time in decades, the country’s milk production is likely to have stagnated in 2022-23 due to Lumpy Skin Disease in cattle across several states and the lagged effect of Covid-19 in the form of stunting of the animals, a senior official with department of animal husbandry and dairying recently had stated. The milk production was estimated at 221 million tonne in 2021-22.
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