Equitas Holdings Limited: Public Issue opens on April 5, 2016

Price Band fixed from Rs.109 to Rs.110 per equity share
Chandigarh, March 29, 2016: Equitas Holdings Limited (the “Company” or “Issuer”) will open on Tuesday, April 5, 2016, a Public Issue of Equity Shares of Face Value of Rs. 10 each (the “Equity Shares”) for Cash at a Price Band from Rs. 109 to Rs. 110 per Equity Share (Including a share premium per Equity Share) (the “Issue”) consisting of a Fresh Issue of Equity Shares aggregating up to Rs. 7,200 million and an Offer For Sale of up to 16,463,772 Equity Shares by International Finance Corporation (“IFC”); up to 11,926,668 Equity Shares by Nederlandse Financierings - Maatschappij Voor Ontwikkelingslanden N.V. (“FMO”) (IFC And FMO collectively referred to as the “DFI Selling Shareholders”); up to 4,999,998 Equity Shares by Aavishkaar Goodwell India Microfinance Development Company Ltd. (“Aavishkaar”); up to 7,153,038 Equity Shares By Aquarius Investments Ltd. (“Aquarius”); up to 868,125 Equity Shares by Creation Investments Equitas Holdings, LLC (“Creation”); up to 4,288,648 Equity Shares by Helion Venture Partners Ii LLC (“Helion”); up to 25,938,594 Equity Shares by India Financial Inclusion Fund (“IFIF”); up to 22,571,820 Equity Shares by Lumen Investment Holdings Limited (“Lumen”); up to 16,975,484 Equity Shares by MVH S.P.A. (“MVH”); up to 6,635,770 Equity Shares by Sarva Capital LLC (“Sarva”); up to 12,840,861 Equity Shares by Sequoia Capital India Investments III (“Sequoia”); up to 1,583,106 Equity Shares by Westbridge Ventures II, LLC (“Westbridge”) (Aavishkaar, Aquarius, Creation, Helion, IFIF, Lumen, Mvh, Sarva, Sequoia And Westbridge collectively referred to as the “PE Selling Shareholders”); and up to 180,000 Equity Shares by P. N. Vasudevan (“Individual Selling Shareholder”) (the DFI Selling Shareholders, PE Selling Shareholders and Individual Selling Shareholder collectively the “Selling Shareholders”). The Issue comprises a Net Issue to the Public of Equity Shares (the “Net Issue”) and a reservation of 250,000 Equity Shares for subscription by Eligible Employees (as defined herein), not exceeding 5% of the Post-Issue Paid-Up Equity Share Capital (the “Employee Reservation Portion”).
Bids can be made for a minimum of 135 Equity Shares and in multiples of 135 Equity Shares thereafter. The Bid/ Issue closes onThursday, April 7, 2016.
The Equity Shares offered through the Issue are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). BSE shall be the Designated Stock Exchange.
The Book Running Lead Managers (“BRLMs”) to the Issue are Axis Capital Limited, Edelweiss Financial Services Limited, HSBC Securities and Capital Markets (India) Private Limited and ICICI Securities Limited.

The Issue is being made through the Book Building Process, in compliance with Regulation 26(1) of SEBI Regulations, wherein 50% of the Net Issue shall be allocated on a proportionate basis to QIBs, provided that the Company in consultation with the BRLMs may allocate up to 60% of the QIB Category to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above Anchor Investor Allocation Price. 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. The Company will allocate the Equity Shares in the Issue only to Resident Indian Bidders. Such allocation to Resident Indian Bidders shall be across all categories. Further, not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price. All potential Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account which will be blocked by the SCSBs to participate in this Issue. The RBI has, through its letter dated November 27, 2015, communicated that any investor that wishes to acquire 5% or more of the post-Issue paid up share capital of the Company, pursuant to the Issue, shall require the prior approval of the RBI.

The Company is a diversified financial services provider focused on individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels. Its focus customer segment includes low income groups and economically weaker individuals operating small businesses, as well as MSEs with limited access to formal financing channels on account of their informal, variable and cash-based income profile. In November 2014, the Reserve Bank of India (“RBI”) introduced the “Guidelines for licensing of small finance banks in the private sector” guidelines. The Company had applied for an SFB license under the applicable guidelines and on October 7, 2015, the RBI granted us in-principle approval to establish an SFB, subject to the terms and condition of such approval. Pursuant to the SFB In-Principle Approval, certain Subsidiaries, namely, EMFL and EHFL are in the process of being amalgamated with EFL to form the Proposed SFB. The Merger Scheme has been approved by the RBI and by the NHB pursuant to letters dated January 22, 2016 and January 20, 2016, respectively.