Capital Small Finance Bank is into Financial Services Small Finance Bank and is looking raise funds through Fresh Issue and Offer for Sale
Capital Small Finance Bank IPO: Capital Small Finance Bank Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.
Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 450 crores and an Offer for Sale up to 2,412,685 Equity Shares.. Nuvama Wealth Management, DAM Capital Advisors and Equirus Capital have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.
Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 450 Crs and offer-for-sale (OFS) of up to 2,412,685 equity shares by Oman India Joint Investment Fund II, PI Ventures LLP, Amicus Capital Private Equity I LLP, Amicus Capital Partners India Fund I and Certain Other Persons Listed in the DRHP who will offoad upto 836,728 equity shares, upto 337,396 equity shares, up to 604,614 equity shares, up to 70,178 equity shares and up to 563,769 equity shares respectively. ..
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Objects of the issue:
1) For augmentation of Bank’s Tier –1 capital base, and 2) General corporate purposes.
Promoters of Capital Small Finance Bank are Sarvjit Singh Samra, Amarjit Singh Samra, Navneet Kaur Samra, Surinder Kaur Samra and Dinesh Gupta and holds 24.01% stake in the company.
About Company:
Capital Small Finance Bank established in 1999 and commenced operations as India’s first small finance bank in 2016. Company's focus primarily on the middle-income customer segments through presence primarily in Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh and UT Chandigarh. It offer a range of banking products on the asset and liability side with our asset products primarily including agriculture loans, MSME and trading loans and mortgages.
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About Industry:
Small finance banks’ AUM clocked 29% CAGR during fiscals 2018-2023. With their localised past experience, SFBs,especially the ones which were existing as local area banks have the ability to manage local stakeholders and maintainoperational efficiency more effectively. CRISIL MI&A expects the sector’s loan portfolio to see a strong ~22-24% CAGR fromFiscal 2023 to Fiscal 2025 as most of the SFBs have completed the transition phase and likely to get benefit from the operatingleverage. The share of SFBs in deposits as well as credit has seen a steady rise over the years and is expected to reach 1.5% and1.6% respectively by Fiscal 2025 from the current 0.9% and 1.4% in deposits and credits in Fiscal 2023. (Source: CRISIL MI&AReport)
Source: SEBI, BSE, NSE, DRHP, Capital Small Finance Bank, Industry Data
Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.
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