Capital Small Finance Bank IPO; Small Finance Bank company IPO to begin from February 07; Key Details here

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 BankIPO: Capital Small Finance Bank to raise around Rs 523 crores through public issue IPO

Capital Small Finance Bank IPO is a public offering of shares by Sarvjit Singh Samra, Amarjit Singh Samra, Navneet Kaur Samra, Surinder Kaur Samra and Dinesh Gupta. The IPO will open on February 07 and will close on February 09. The price band is ₹445 to ₹468 per share and the lot size is 32 shares. The issue size is ₹523.07 crore. The shares are expected to be listed on NSE, BSE on February 14 (^). Some additional information that you may find useful are: Gross Advances in 1QFY24 / FY23 / FY22 / FY21 were Rs 5519 cr / Rs 5507 cr / Rs4688 cr / Rs3763 cr. Total Deposits in 1QFY24 / FY23 / FY22 / FY21 at Rs7064 cr / Rs6560 cr / Rs6046 cr / Rs5221 cr. Net Interest Income (NII) in 1QFY24 / FY23 / FY22 / FY21 at Rs86.5 cr / Rs320 cr / Rs255cr / Rs198 cr. : (**) - based on higher price band (^) indicative date

Also READ: Small Finance Bank Company Capital Small Finance Bank files DRHP with SEBI for the proposed IPO; Key Details here

Key Pointers of Capital Small Finance Bank IPO:

Promoters of the company are Sarvjit Singh Samra, Amarjit Singh Samra, Navneet Kaur Samra, Surinder Kaur Samra and Dinesh Gupta Currently promoters hold 23.96% stake in the company. While post-equity promoters stake will be 18.85%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 519 to 523 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) For augmentation of Bank’s Tier –1 capital base and 2) General corporate purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 06-Feb-24.
• Price band for the IPO has been fixed at Rs 445 to 468 per share and bid lot are in multiple of 32 shares. The implied market cap post-issue at Rs 2,027 to 2,108 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on February 12 and share are expected to be listed on NSE, BSE on February 14.
• Company has direct competition in the Small Finance Bank's space with listed peers like AU Small Finance Bank, Equitas SFB, Ujjivan SFB, Suryoday Small Finance Bank and ESAF SFB amongst others
• Nuvama Wealth Management, DAM Capital Advisors and Equirus Capital has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.

About Capital Small Finance Bank Limited

Capital Small Finance Bank Limited

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.

Gross Advances in 1QFY24 / FY23 / FY22 / FY21 were Rs 5519 cr / Rs 5507 cr / Rs4688 cr / Rs3763 cr. Total Deposits in 1QFY24 / FY23 / FY22 / FY21 at Rs7064 cr / Rs6560 cr / Rs6046 cr / Rs5221 cr. Net Interest Income (NII) in 1QFY24 / FY23 / FY22 / FY21 at Rs86.5 cr / Rs320 cr / Rs255cr / Rs198 cr.

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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, IPO Status, 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.