Fincare Small Finance Bank has got the go-ahead to raise Rs 1,330 crore through an initial share sale. The initial public offer (IPO) comprises a fresh issue of equity share of the bank worth Rs 330 crore and a recommendation for purchase aggregating up to Rs 1,000 crore by promoter Fincare Business Services Limited, according to the IPO

This offer includes a reservation for subscriptions by employees. Fincare Small Finance Bank, which filed IPO papers with the capital market regulator in May, obtained its observations on July 28, an update with SEBI showed on Monday.

As per the observations of SEBI, any company must launch public issues like IPO, follow-on public offer, and rights issues.

Going by the draft papers, the bank would utilise net proceeds from the new issue towards augmenting its Tier-1 capital base to meet future capital requirements.

Further, a small portion of the proceeds will be used towards meeting the expenses concerning the offer.
Under the terms of the RBI final approval and the small finance bank (SFB) licensing guidelines, the lender is required to list its equity shares on the stock exchanges within three years from reaching a net worth of Rs 500 crore.