Equitas Holdings IPO which was the first IPO of the new financial year closed with a bang yesterday, garnering a subscription of 17 times the issue size. The stock which was attractively priced compared to it’s listed peers like SKS Microfinance and Arman Financial Services saw high demand from HNI’s and Domestic Institutional Investors. The attractive valuation was primarily responsible for acute investor interest in the IPO.
The shares of the company are expected to list on 21st April 2016, the company has informed the stock exchanges. You can expect the allotment to be completed by next week while the refunds would be electronically credited into your account by 20th April 2016. The allotment ratio for retail investors could be the ratio of 8:10 , which means for every ten share you have applied you will be allotted 8 shares.
We have been reporting extensively on the company since 2008 and you can read our previous publications on Equitas Holdings below.
- Profile Of Equitas Holdings
- Review of Equitas IPO
- Analysis of Equitas IPO
- Subscription of Equitas IPO Details
Traders who buy shares on the grey market have indicated that the share is trading at a value of Rs 130-132 in the grey market. Some analysts have also indicated that Equitas Holdings might announce blockbuster Annual results in the first week of May which will further increase it’s price to over Rs 150 by May end. This means retail investors who have burnt their fingers in Coffee Day Holdings, Teamlease and Quick Heal IPO’s can at last expect some profits.
What is the Grey Market ?
In India, there are several offline over the counter markets where brokers and traders take orders for preferred clients on select issues even before the shares are listed. This facility provides two benefits to investors, they can sell their stock without having to wait for the listing day. They can also purchase the stock if they feel they will not be allotted the quantity that they have subscribed for.
Equitas Future Plans for Finance Bank License
The first step for the NBFC would be to merge it’s different subsidiaries which it setup for the microfinance, housing loans and vehicle financing. After the 2010 Andhra Pradesh Microfinance Crisis, the company had created three subsidiaries to insulate it’s verticals from risks emanating from different loan products . Equitas hopes to start operations as Equitas Bank by April 2017.