Capital Small Finance Bank IPO

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 nameCapital Small Finance Bank Limited
IndustryBank – Private
Company Website

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 date07 February 2024
IPO Closing09 February 2024
Basis of Allotment12 February 2024
Initiation Refund13 February 2024
Credit to Demat Account13 February 2024
Listing Date14 February 2024
(Cut-off time for UPI mandate confirmation – 5 PM on February 9, 2024)

Capital Small Finance Bank IPO details

Issue typeBook 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 size32 Shares
Shareholding pre-issue35,350,636
Shareholding post-issue44,966,020
Listing ExchangeBSE & NSE

Capital Small Finance Bank IPO Lot Size

Retail (Min)132₹14,976
Retail (Max)13416₹194,688
S-HNI (Min)14448₹209,664
S-HNI (Max)662,112₹988,416
B-HNI (Min)672,144₹1,003,392

Capital Small Finance Bank IPO Reservation Details

Investor CategoryShares Offered
Anchor Investor Shares Offered3,353,013 (30.00%)
QIB Shares Offered2,235,343 (20.00%)
NII (HNI) Shares Offered1,676,507 (15.00%)
  bNII > ₹10L1,117,671 (10.00%)
  sNII < ₹10L558,836 (5.00%)
Retail Shares Offered3,911,850 (35.00%)
Total Shares Offered11,176,713 (100%)

Capital Small Finance Bank Financial Performance

 FY 2021FY 2022FY 2023H1 FY 2024
Net income139.56188.86260.62287.57
Margin (%)25.0429.8635.9269.26
(Amount in ₹ Crores)

Capital Small Finance Bank Valuations & Margins

FY 2021FY 2022FY 2023
PE ratio16.35 – 17.20
RONW (%)9.0512.1315.33
EBITDA (%)12.6015.9119.96

Company Promoters

  • Sarvjit Singh Samra
  • Amarjit Singh Samr
  • Navneet Kaur Samr
  • Surinder Kaur Samra
  • Dinesh Gupta

Promoter Holding

Pre Issue Share Holding24.01%
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

C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 810 811 4949

Capital Small Finance Bank Contact Details

MIDAS Corporate Park, 3rd Floor,
37, G.T. Road, Jalandhar 144 001, Punjab, India
Phone: +91 181 5051111/2222

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

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