India’s Fincare Small Finance Bank (SFB) has started a process to raise up to INR13.3bn ($181m) through an initial public offering (IPO).
The microfinance firm has filed a draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI), the regulatory body for securities and commodity market, to raise the money.
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According to local news reports, the IPO will include an offer for sale of INR10bn by the bank’s promoter Fincare Business Services and a fresh issue of INR3.3bn.
Based in Bengaluru, Fincare is a digital-first SFB catering to unbanked and underbanked people. It particularly focuses on rural and semi-urban areas.
In 2015, the entity is one of the ten of 72 applicants to secure the Reserve Bank of India (RBI) approval to convert into a SFB.
Previously, it used to conduct business from two entities Disha Microfin and Future Financial Services.
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By GlobalDataUnder a single overarching management team, the two entities offered services in west India and south India respectively.
Fincare started banking operations in July 2017.
Recently, Motilal Oswal Private Equity through its India Business Excellence Fund III purchased a minority stake in Fincare SFB.
The company plans to use the proceeds received from the fresh share issue to bolster its tier-1 capital base.
