Capital Small Finance Bank Limited IPO: An Overview and Corporate Insight
Established in 1999, Capital Small Finance Bank Limited operates as a small finance bank, obtaining its SFB license in 2015 as the first non-NBFC microfinance entity. With a branch-based operating model, the company has a robust presence in semi-urban and rural regions. Capital Small Finance Bank targets middle-income customers earning between ₹0.4-5 million annually, striving to become their primary banker through a blend of product variety, customer service, physical branches, and digital channels.
Headquartered in Jalandhar, Punjab, the bank strategically extends its SFB operations across northern Indian states including Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and UT Chandigarh.
Grey Market Premium Analysis and IPO Timelines – Capital Small Finance Bank IPO
|
Date |
GMP |
|---|---|
| February 06 | ₹47 |
| February 05 | ₹47 |
| February 04 | ₹50 |
With a price band of ₹468.00, the estimated listing price for Capital Small Finance Bank IPO is ₹515.00, calculated as the cap price plus today’s Grey Market Premium (GMP). This suggests an expected percentage gain of 10.04% per share.
Pricing Details and Lot Size – Capital Small Finance Bank Limited IPO
The price band for Capital Small Finance Bank IPO is ₹445 to ₹468 per share.
Book-Running Lead Managers and Registrar – Capital Small Finance Bank Limited IPO
Nuvama Wealth Management Limited, Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd), and Equirus Capital Private Limited are the joint Book Running Lead Managers (BRLMs) to the issue while Link Intime India is the registrar for Capital Small Finance Bank IPO.
Offer for Sale and IPO Size Breakdown – Capital Small Finance Bank Limited IPO
Capital Small Finance Bank’s IPO is a book built issue of Rs 523.07 crores, consisting of a fresh issue of 0.96 crore shares worth Rs 450.00 crores and an offer for sale of 0.16 crore shares worth Rs 73.07 crores.
IPO Price Band and Lot Size –Capital Small Finance Bank Limited IPO
The IPO price band is set at ₹445 to ₹468 per share, with a minimum lot size of 32 shares. Retail investors need a minimum investment of ₹14,976. For sNII, the minimum lot size investment is 14 lots (448 shares), amounting to ₹209,664, and for bNII, it is 67 lots (2,144 shares), amounting to ₹1,003,392.
IPO Timelines at a Glance – Capital Small Finance Bank Limited IPO
| Event | Date |
| IPO Opening Date | February 7,2024 |
| IPO Closing Date | February 9, 2024 |
| IPO Allotment Date | February 12, 2024 |
| Initiation of Refunds | February 13, 2024 |
| Credit of Shares to Demat | February 13, 2024 |
| IPO Listing Date | February 14, 2024 |
Utilisation of Fresh Issuance and Technological Advancements – Capital Small Finance Bank Limited IPO
The bank intends to utilize the Net Proceeds from the Fresh Issue to strengthen its Tier-I capital base, ensuring compliance with future capital requirements, and to cover expenses related to the Offer. Additionally, listing the Equity Shares on the Stock Exchanges is expected to provide various benefits to the bank.
Conclusion
This small finance bank currently operates primarily in the northern region but plans to expand its branch network nationwide in the coming years. It has consistently demonstrated steady growth in both top and bottom lines for the reported periods. However, based on FY24 annualized earnings, the issue appears to be aggressively priced. Well-informed investors may consider investing for potential long-term rewards.
Frequently Asked Questions (FAQ) – Capital Small Finance Bank Limited IPO
What does Capital Small Finance Bank Limited Ltd. specialise in?
Capital Small Finance Bank targets middle-income customers earning between ₹0.4-5 million annually, striving to become their primary banker through a blend of product variety, customer service, physical branches, and digital channels.
What is the primary purpose of Capital Small Finance Bank Limited’s IPO?
The bank intends to utilize the Net Proceeds from the Fresh Issue to strengthen its Tier-I capital base, ensuring compliance with future capital requirements, and to cover expenses related to the Offer. Additionally, listing the Equity Shares on the Stock Exchanges is expected to provide various benefits to the bank.
Who are the lead managers for Capital Small Finance Bank Limited’s IPO?
Nuvama Wealth Management Limited, Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd), and Equirus Capital Private Limited are the joint Book Running Lead Managers (BRLMs) to the issue.
How is the IPO structured in terms of new issuance and offer for sale (OFS)?
Capital Small Finance Bank’s IPO is a book built issue of Rs 523.07 crores, consisting of a fresh issue of 0.96 crore shares worth Rs 450.00 crores and an offer for sale of 0.16 crore shares worth Rs 73.07 crores.
What is the lot size and minimum investment for retail investors in Capital Small Finance Bank Limited IPO?
Retail investors need a minimum investment of ₹14,976. For sNII, the minimum lot size investment is 14 lots (448 shares), amounting to ₹209,664, and for bNII, it is 67 lots (2,144 shares), amounting to ₹1,003,392.
What is the price band for Capital Small Finance Bank Limited IPO?
The price band for Capital Small Finance Bank IPO is ₹445 to ₹468 per share.
How has the Grey Market Premium (GMP) trended for Capital Small Finance Bank Limited IPO?
The GMP for today is Rs.47.
When does the IPO open and close for subscription?
Capital Small Finance Bank IPO will open for subscription on February 7 and close on February 9.
When is the allotment date for Capital Small Finance Bank Limited IPO?
The finalisation of the basis of allotment for Capital Small Finance Bank IPO will be done on February 12 2024, and the allotted shares will be credited to investors’ demat accounts by February 13.
When is Capital Small Finance Bank Limited expected to be listed on the stock exchanges?
The anticipated listing date for Capital Small Finance Bank Limited IPO is February 14 2024 on the BSE and NSE mainboards.
