Kadambelil Paul Thomas, MD and CEO of ESAF Small Finance Bank, said: ESAF Small Finance Bank will have until December to complete the re-submission of its prospectus for its initial public offering (IPO) as it cannot complete the process within the earlier timetable. Thomas said the bank will now opt for a smaller IPO than the Rs 998 crore previously planned.

“The exact amount has not yet been determined, but the prevailing view is that we will go smaller. The current CRAR is 20%. We need funding. It will take two months to get Sebi’s approval,” he said on the sidelines of a Mumbai Bank event.

The IPO is likely to take place in the next financial year. In October 2021, the small Kerala-based financial bank received approval from Sebi for an IPO. The company submitted a draft document in July 2021.

Thomas said the small financial bank could not meet its earlier plans due to turbulent market conditions and the turmoil caused by the war in Ukraine.

The earlier planned public offering of Rs 998 crore included a new issue of shares worth Rs 800 crore and a sale offer of Rs 197.78 crore from existing selling shareholders.