Fincare Small Finance Bank has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) on Tuesday. The endorsement follows the bank’s resubmission of its preliminary IPO documents in May 2023, which was necessitated after SEBI returned the initial application. The regulator had asked for updates to the section detailing the bank’s financial earnings for fiscal year 2022-23.

The journey towards becoming a publicly traded entity has been a long one for Fincare Small Finance Bank. The bank, which transitioned from a microfinance institution to a small finance bank, has been operational since July 2017. Based in Bengaluru, it had previously conducted much of its business through two entities: Disha Microfin and Future Financial Services.

This recent approval from SEBI marks a significant step in the bank’s path towards going public. The process began with the filing of a draft red herring prospectus (DRHP) in August 2022.

Interestingly, this is not the first time Fincare Small Finance Bank has sought to go public. The lender had obtained approval from SEBI for an IPO after submitting draft papers in May 2021 but decided against floating the issue.

With this latest development, Fincare Small Finance Bank moves closer to its goal of becoming a publicly listed entity, marking an important milestone in its corporate journey.