Get App
Capital Small Finance Bank IPO is a book-built issue of Rs 523.07 crores. The issue is a combination of a fresh issue of 0.96 crore shares aggregating to Rs 450.00 crores and an offer for sale of 0.16 crore shares aggregating to Rs 73.07 crore.
The IPO opens for subscription on February 7, 2024, and closes on February 9, 2024. The price band is set at ₹445 to ₹468 per share and the minimum lot size for an application is 32 Shares.
Company Summary
India’s first small finance bank in 2016. They offer a range of banking products on the asset and liability side. The asset products primarily include agriculture loans, MSME, and trading loans and mortgages.
Headquartered in Jalandhar, Punjab, They have over the years expanded their SFB operations strategically in the north Indian states of Punjab, Haryana, Rajasthan, Delhi, and Himachal Pradesh, and UT Chandigarh where they offer their banking services in a contiguous manner
They are one out of the two non-NBFC microfinance entities to receive the SFB license in 2015 and they focus primarily on the middle-income customer segments i.e., customers with an average annual income of ₹ 0.4 million to ₹ 5 million.
As of June 30, 2023, Capital Small Finance Bank had a presence in five states and one union territory, with a total of 172 branches and 174 ATMs. The bank’s branches were predominantly located in rural and semi-urban areas, covering 24 districts, and serving approximately 75.90% of the total customers, both in terms of credit and deposits. This suggests that the bank has a well-defined niche catering to the middle-income group, with a special emphasis on rural and semi-urban areas.
As of March 31 and June 30, 2023, respectively, 99.82% and 99.84% of the bank’s loan book was secured, with 85.16% and 84.66% of loans secured by immovable properties.
The average ticket size of Capital Small Finance Bank’s agriculture, MSME and trading, and mortgage lending products as of March 31, 2023, were ₹ 1.23 million, ₹ 1.82 million, and ₹ 1.16 million respectively.
Company Strengths
The Bank has created a retail-centric deposit franchise with a high share of CASA deposits with the CASA ratio increasing from 40.08% in Fiscal 2021 to 41.88% in Fiscal 2023. Also, have the second highest proportion of CASA deposits to total deposits amongst comparable SFBs.
They have a well-diversified portfolio across products (agricultural, MSME and trading, mortgage lending, and other products) which helps them mitigate risk and optimize their resources
The percentage of gross advances to clients up to 2.5 million has increased to 67.80% as of March 31, 2023, from 62.88% as of March 31, 2021.
Their digital transition has helped them to effect a wider outreach to their customers which resulted in ₹ 10.39 million digital transactions during Fiscal 2023, increasing from ₹ 2.87 million in Fiscal 2021. Further, the digital transactions share in non-cash transactions increased from 54.48% in Fiscal 2021 to 81.32% in Fiscal 2023 and was approximately 83.74% during the three months ended June 30, 2023.
Company Financials:
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 8,390.69 | 7,990.77 | 7,153.92 | 6,371.24 |
| Revenue | 415.22 | 725.48 | 632.40 | 557.27 |
| Profit After Tax | 54.39 | 93.60 | 62.57 | 40.78 |
| Net Worth | 711.76 | 610.61 | 515.78 | 450.79 |
| Reserves and Surplus | 676.41 | 576.36 | 481.74 | 416.88 |
| Total Borrowing | 572.76 | 721.38 | 498.43 | 616.72 |
Amount in crore | ||||
Objectives of the IPO
The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting their Bank’s Tier–I capital base to meet their Bank’s future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses concerning the Offer.
Promoters of the company:
The Promoters of the Bank are Sarvjit Singh Samra, Amarjit Singh Samra, Navneet Kaur Samra, Surinder Kaur Samra, and Dinesh Gupta.
IPO details
| 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 |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 32 | ₹14,976 |
| Retail (Max) | 13 | 416 | ₹194,688 |
| Small-HNI(Min) | 14 | 448 | ₹209,664 |
| small-HNI(Max) | 66 | 2112 | ₹988,416 |
| Large-HNI (Min) | 67 | 2144 | ₹1,003,392 |
Allotment Schedule
| 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 |
IPO Reservation
| Investor Category | Shares Offered |
| 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 |
To check Allotment, click here