Capital Small Finance Bank IPO will open for subscription from 07 February 2024. The company aims for an issue size of ₹523.07 Cr through this IPO.
Company Overview
| Full name | Capital Small Finance Bank Limited |
| Sector | Banking |
| Industry | Bank – Private |
| Company Website | https://www.capitalbank.co.in/ |
About Company
Capital Small Finance Bank provides various banking products on both the asset and liability fronts. Asset products mainly encompass agricultural loans, MSME, and trading loans (such as working capital and machinery loans), as well as mortgages (comprising housing loans and loans against property). The bank focuses on the middle-income bracket, catering to those earning between INR 4 Lakhs and INR 50 Lakhs annually. The distribution of the branches reflects its commitment, with 41.62% in rural areas, 34.68% in semi-urban regions, and 23.70% in urban centers as of 30 September 2023. With its headquarters located in Jalandhar, Punjab, the bank has strategically expanded its Small Finance Bank (SFB) operations over the years, focusing on the northern Indian states of Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and the Union Territory of Chandigarh.
Capital Small Finance Bank also generates fee income through various products and services, including forex and money transfers, outward remittances, safe deposit lockers, distribution of life insurance and general insurance products, 3-in-1 demat and trading accounts, and other ancillary services. The non-interest income has increased from INR 45.83 crore in FY 2021 to INR 49.48 crore in FY 2023.
As of 30 September 2023, and 31 March 2023, respectively, 99.85% and 99.82% of the bank’s loan book were secured, with 84.26% and 85.16% of the loans being secured by immovable properties. Moreover, the bank has strategically emphasized the development of a diversified loan book. Since FY 2021, loans with a ticket size of up to INR 0.25 crore have increased from 62.88% of the total loan book to 67.80% in FY 2023, reaching 67.44% as of 30 September 2023.
The Objectives of the Issue
The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting our Bank’s Tier-I capital base to meet the Bank’s future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses of the Offer. The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.
Capital Small Finance Bank IPO Timetable
| IPO Opening date | 07 February 2024 |
| IPO Closing | 09 February 2024 |
| Basis of Allotment | 12 February 2024 |
| Initiation Refund | 13 February 2024 |
| Credit to Demat Account | 13 February 2024 |
| Listing Date | 14 February 2024 |
Capital Small Finance Bank IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹523.07 Cr – 11,176,713 shares |
| Fresh Issue | ₹450 Cr – 9,615,384 shares |
| Offer for sale | ₹73.07 Cr – 1,561,329 shares |
| Face value | ₹10 per share |
| Price Band | ₹445 to ₹468 per share |
| Lot size | 32 Shares |
| Shareholding pre-issue | 35,350,636 |
| Shareholding post-issue | 44,966,020 |
| Listing Exchange | BSE & NSE |
Capital Small Finance Bank IPO Lot Size
| 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 | 2,112 | ₹988,416 |
| B-HNI (Min) | 67 | 2,144 | ₹1,003,392 |
Capital Small Finance Bank IPO Reservation Details
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 3,353,013 (30.00%) |
| QIB Shares Offered | 2,235,343 (20.00%) |
| NII (HNI) Shares Offered | 1,676,507 (15.00%) |
| bNII > ₹10L | 1,117,671 (10.00%) |
| sNII < ₹10L | 558,836 (5.00%) |
| Retail Shares Offered | 3,911,850 (35.00%) |
| Total Shares Offered | 11,176,713 (100%) |
Capital Small Finance Bank Financial Performance
| FY 2021 | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 557.27 | 632.40 | 725.48 | 415.22 |
| Expenses | 516.49 | 569.83 | 631.89 | 360.83 |
| Net income | 139.56 | 188.86 | 260.62 | 287.57 |
| Margin (%) | 25.04 | 29.86 | 35.92 | 69.26 |
Capital Small Finance Bank Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 11.98 | 18.22 | 27.21 |
| PE ratio | – | – | 16.35 – 17.20 |
| RONW (%) | 9.05 | 12.13 | 15.33 |
| NAV | 132.93 | 151.50 | 178.27 |
| EBITDA (%) | 12.60 | 15.91 | 19.96 |
| Debt/Equity | – | – | – |
Company Promoters
- Sarvjit Singh Samra
- Amarjit Singh Samr
- Navneet Kaur Samr
- Surinder Kaur Samra
- Dinesh Gupta
Promoter Holding
| Pre Issue Share Holding | 24.01% |
| Post Issue Share Holding | – |
Capital Small Finance Bank IPO Lead Manager(s)
- Nuvama Wealth Management Limited
- DAM Capital Advisors Ltd (Formerly Idfc Securities Ltd)
- Equirus Capital Private Limited
Capital Small Finance Bank Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 810 811 4949
Email: capitalsfb.ipo@linkintime.co.in
Website: www.linkintime.co.in
Capital Small Finance Bank Contact Details
CAPITAL SMALL FINANCE BANK LIMITED
MIDAS Corporate Park, 3rd Floor,
37, G.T. Road, Jalandhar 144 001, Punjab, India
Phone: +91 181 5051111/2222
Email: cs@capitalbank.co.in
Website: www.capitalbank.co.in
Capital Small Finance Bank IPO Allotment Status
Capital Small Finance Bank IPO allotment status will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.
Final thoughts
Capital Small Finance Bank IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
