Capital Small Finance Bank IPO Price: ₹445 to ₹468
IPO Date Range: Feb 7, 2024 - Feb 9, 2024
Established in 1999, Capital Small Finance Bank Limited operates as a small finance bank. In 2015, it achieved the distinction of being the inaugural non-NBFC microfinance entity to be granted the coveted SFB license. The company boasts a robust presence in semi-urban and rural locales, employing a branch-centric operational approach.
Capital Small Finance Bank offers a diverse range of loan products, each catering to specific financial needs. As of March 31, 2023, the average ticket size for the bank's agriculture, MSME and trading, and mortgage lending products stands at ₹1.23 million, ₹1.82 million, and ₹1.16 million, respectively. These figures reflect the bank's commitment to providing tailored financial solutions, addressing the unique requirements of different sectors within the middle-income customer base.
As of March 31 and June 30, 2023, an impressive 99.82% and 99.84% of Capital Small Finance Bank's loan book are secured, emphasizing the institution's commitment to financial prudence and risk management. Notably, a substantial portion of these secured loans, accounting for 85.16% and 84.66%, is backed by immovable properties. This robust security framework ensures a stable and resilient loan portfolio, contributing to the bank's overall financial stability.
Headquartered in Jalandhar, Punjab, Capital Small Finance Bank strategically extends its Small Finance Bank (SFB) operations across the northern states of India, including Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and UT Chandigarh.
As of June 30, 2023, the bank boasts a significant presence in five states and one union territory, housing a total of 172 branches and 174 ATMs. Notably, these branches are predominantly situated in rural and semi-urban areas, spanning 24 districts. Impressively, they cater to approximately 75.90% of the total customer base, encompassing both credit and deposits. This underscores the bank's focused niche, specifically targeting the middle-income group, with a strong commitment to serving the needs of rural and semi-urban communities.
| IPO Date | February 7, 2024 to February 9, 2024 |
| Listing Date | Wednesday, February 14, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹445 to ₹468 per share |
| Lot Size | 32 shares |
| Total Issue Size | 11,176,713 shares (aggregating up to ₹523.07 Cr) |
| Fresh Issue | 9,615,384 shares (aggregating up to ₹450.00 Cr) |
| Offer For Sale | 1,561,329 shares of ₹10 (aggregating up to ₹73.07 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 35,350,636 |
| Share holding post issue | 44,966,020 |
Investors have the option to bid for a minimum of 32 shares, and they can bid in multiples of this amount. The table below outlines the minimum and maximum investment amounts for retail investors and HNIs, both in terms of shares and total value.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 32 | ₹14,976 |
| Retail (Max) | 13 | 416 | ₹194,688 |
| S-HNI (Min) | 14 | 448 | ₹209,664 |
| S-HNI (Max) | 66 | 2112 | ₹988,416 |
| B-HNI (Min) | 67 | 2144 | ₹1,003,392 |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
| IPO Open Date | Wednesday, February 7, 2024 |
| IPO Close Date | Friday, February 9, 2024 |
| Basis of Allotment | Monday, February 12, 2024 |
| Initiation of Refunds | Tuesday, February 13, 2024 |
| Credit of Shares to Demat | Tuesday, February 13, 2024 |
| Listing Date | Wednesday, February 14, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 9, 2024 |
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Capital Small Finance Bank Limited experienced a notable 14.72% surge in revenue, coupled with an impressive 49.59% rise in profit after tax (PAT) during the financial year ending on March 31, 2023, as compared to the figures recorded on March 31, 2022.
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 | 30 Sep 2023 |
|---|---|---|---|---|
| Assets | 6371.24 | 7153.92 | 7990.77 | 8390.69 |
| Revenue | 557.27 | 632.40 | 725.48 | 415.22 |
| Profit After Tax | 40.78 | 62.57 | 93.60 | 54.39 |
| Net Worth | 450.79 | 515.78 | 610.61 | 711.76 |
| Reserves & Surplus | 416.88 | 481.74 | 576.36 | 676.41 |
| Total Borrowing | 616.72 | 498.43 | 721.38 | 572.76 |
| KPI | Values |
|---|---|
| Market Cap (₹ Cr.) | 2104.41 |
| EPS (Rs) | 26.48 |
| P/E (x) | 17.68 |
| ROE | 16.45% |
| Debt/ Equity | 0.95 |
| RoNW | 15.33% |
The Bank intends to utilize the Net Proceeds from the Fresh Issue to strengthen our Tier-I capital base, ensuring readiness for future capital requirements. Additionally, the funds generated from the Fresh Issue will cover expenses related to the Offer. The Bank anticipates reaping the advantages of listing the Equity Shares on the Stock Exchanges.
Prospectus: Official documents that provide detailed information about the IPO and the company. Capital Small Finance Bank DRHP and Capital Small Finance Bank RHP.
An IPO, or Initial Public Offering, is the process by which a private company offers its shares to the public for the first time to raise capital.
Companies go public to raise capital for expansion, reduce debt, or for other corporate purposes. It also provides liquidity to existing shareholders.
The price range for the"Capital Small Finance Bank Limited" IPO is ₹445 to ₹468 per share.
The "Capital Small Finance Bank Limited" IPO is expected to be listed on Wednesday, 14 February 2024.
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