Capital Small Finance Bank Ltd. IPO

Capital Small Finance Bank Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹468

Issue Price

Listing Price

₹435

Listing Price

Listing Gains

-₹33.00 (-7.05%)

Listing Gains

IPO Details

Bidding Dates

07 Feb - 09 Feb '24

Bidding Dates

Min. Investment

₹14,240

Min. Investment

Lot Size

32.00

Lot Size

Price Range

₹445 - ₹468

Price Range

Issue Size

497 Cr

Issue Size

Subscription Rate

  • Retail Individual Investor
    2.49x
  • Non-Institutional Investor
    4.05x
  • Qualified Institutional Buyers
    6.64x
  • Employees


About Company

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.

Important Dates - Capital Small Finance Bank IPO

Application opens on 7th February 2024
Last date of application 9th February 2024
Date of Allotment 12th February 2024
Refund begins from 13th February 2024
Credit of shares to Demat 13th February 2024
Listing date 12th February 2024

Why should you invest in Capital Small Finance Bank Ltd. IPO?

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.


Capital Small Finance Bank Ltd. IPO - SWOT Analysis

Strengths

  1. Diversified product portfolio covering agricultural, MSME, trading, mortgage lending, and other areas.
  2. Retail-oriented liability franchise, witnessing a rise in CASA ratio from 40% in FY21 to 41% in FY23.
  3. Majority of loan book (99%) secured, with 84% of loans backed by immovable properties as of September 30, 2023.

 

Weaknesses

  1. Operates in a competitive industry, facing competition from IDFC First Bank, AU SFB, Equitas SFB, Ujjivan SFB, Suryoday SFB, and ESAF SFB.
  2. Significantly relies on lending business, contributing to 73% of total revenue in the six months ended September 30, 2023.
  3. Experienced negative cash flows from operating activities in FY21 and FY22, as well as consecutively from investing activities between FY21 and Q2 FY24.
  4. Total indebtedness amounted to ₹529 crore as of December 31, 2023.

 

Opportunities

  1. Implemented streamlined credit assessment processes and risk management practices, including a credit sanctioning committee monitoring exposures of ₹1 crore or above.
  2. Adopts a customer-centric approach, evident from its understanding of target customers, boasting 7,25,037 customers as of September 30, 2023.
  3. Demonstrates a consistent track record of growth, coupled with continual improvement in operational and profitability metrics.

 

Threats

  1. The business is primarily concentrated in North India, with 86% of total branches located in Punjab as of September 30, 2023.
  2. Faces the risk of volatility in interest rates, which could impact its operations and financial performance.

Capital Small Finance Bank IPO Grey Market Premium

Date GMP
06th February Rs.47
05th February Rs.47
04th February Rs.50

 

Capital Small Finance Bank IPO Noteworthy Highlights

  • The issue is a combination of fresh issue of 0.96 crore shares aggregating to Rs 450.00 crores and offer for sale of 0.16 crore shares aggregating to Rs 73.07 crores.

  • 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.



How to apply for Capital Small Finance Bank Ltd. IPO?

You can apply for the Capital Small Finance Bank Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an Capital Small Finance Bank Ltd. click here.
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Capital Small Finance Bank Ltd. IPO FAQs

What are the opening and closing dates for Capital Small Finance Bank IPO?

Capital Small Finance Bank IPO will open for subscription on February 7 and close on February 9.

What is the price band for Capital Small Finance Bank IPO?

The price band for Capital Small Finance Bank IPO is ₹445 to ₹468 per share.

Who is taking part in the OFS?

The investor shareholders offering shares in the Offer for Sale (OFS) include Oman India Joint Investment Fund II (8.37 lakh shares), Amicus Capital Private Equity LLP (1.51 lakh shares), Amicus Capital Partners India (0.17 lakhs shares), and others (5.56 lakhs shares).

What is the minimum and maximum lot size for the Capital Small Finance Bank IPO?

The minimum lot size for an application is 32 shares and in multiples thereof.

Who are Capital Small Finance Bank IPO Lead Managers?

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.

Who is the registrar of the issue?

Link Intime India is the registrar for Capital Small Finance Bank IPO.

When will the Capital Small Finance Bank IPO allotment take place?

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 and where will the Capital Small Finance Bank shares be listed?

The equity shares of Capital Small Finance Bank are proposed to be listed on February 14 ,2024, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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