India: As first small finance bank to hit market, Equitas IPO to enjoy first-mover advantage

Equitas Holdings Ltd will be the first so-called small finance bank (SFB) to hit the public markets. Being ahead of its peers will help. There are 10 companies that received approval to set up SFBs, and most have large foreign shareholding, which needs to be reduced to 49% to meet the central bank’s norms. Whether these companies tap the public markets or resort to private capital, the fact that they can’t sell shares to foreign investors will make the task challenging.