Equitas Small Finance Bank on March 18 said it will defer the launch of its initial public offering due to coronavirus-led weak market conditions. Equitas is the 3rd victim of COVID-19 that battered not only global equity markets but also commodities. Indian equities have so far corrected nearly 32% from record highs seen in Jan this year.
Fast food restaurant company Burger King and specialty chemicals manufacturer Rossari Biotech were 2 others who postponed their IPOs scheduled to open on March 18. Antony Waste Handling Cell chose to withdraw its IPO due to market conditions.
The carnage on the Street also affected the listing of SBI Cards and Payment Services. The stock traded at Rs 689.25 per share, 8.7% down from its issue price of Rs 755 per share.
Equitas management said the IPO of Equitas Small Finance Bank will be delayed as the market is volatile and it is not an opportune moment to get listed on bourses.
Equitas Small Finance Bank had received approval from the capital market regulator SEBI to launch the IPO on March 3. “We need to see what’s good for the bank while getting listed,” they added.
The draft red herring prospectus for IPO was filed by the company in December last year. The issue was slated to consist of a fresh issue of Rs 550 crores and offer for sale of 8 crores shares by parent firm Equitas Holdings.