Report
EUR 88.49
For Business Accounts Only
ESAFSFB focuses on financial inclusion via providing microfinance loans. As of Nov 2019, it had operations in 16 states and one union territory. Through its 403 branches and 38 ultra-small branches, it has served over 3.73m customers.
ESAFSFB has grown its loan book by 3.6x, over FY17 till Sep 2019. At the same time, it has used its banking license to scale up its deposit base by 14.8x over FY17-6M20. Profits have tripled in each of the past two reporting periods. At the same time, its margins and asset quality have been largely stable.
However, it remains highly dependent on a related party for sourcing most of its customers and the company has failed to explain the rationale behind such an arrangement. Furthermore, its business is highly exposed to the states of Kerala and Tamil Nadu.
ESAF Small Finance Bank Pre-IPO - Growing fast but remains highly dependant on a related party
ESAF Small Finance Bank (ESAFSFB from hereon) aims to raise up to US$150m in its India IPO. Its roots can be traced back to the 90’s even though the bank was incorporated in May 2016 and commenced its business in Mar 2017.ESAFSFB focuses on financial inclusion via providing microfinance loans. As of Nov 2019, it had operations in 16 states and one union territory. Through its 403 branches and 38 ultra-small branches, it has served over 3.73m customers.
ESAFSFB has grown its loan book by 3.6x, over FY17 till Sep 2019. At the same time, it has used its banking license to scale up its deposit base by 14.8x over FY17-6M20. Profits have tripled in each of the past two reporting periods. At the same time, its margins and asset quality have been largely stable.
However, it remains highly dependent on a related party for sourcing most of its customers and the company has failed to explain the rationale behind such an arrangement. Furthermore, its business is highly exposed to the states of Kerala and Tamil Nadu.
Underlying
ESAF Small Finance Bank Ltd
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Sumeet Singh
Other Reports on these Companies
Other Reports from Aequitas Research
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.