Capital Small Finance Bank IPO

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 Ended30 Sep 202331 Mar 202331 Mar 202231 Mar 2021
Profit After Tax54.3993.6062.5740.78
Net Worth711.76610.61515.78450.79
Reserves and Surplus676.41576.36481.74416.88
Total Borrowing572.76721.38498.43616.72

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 DateFebruary 7, 2024 to February 9, 2024
Listing DateWednesday, February 14, 2024
Face Value₹10 per share
Price Band₹445 to ₹468 per share
Lot Size32 Shares
Total Issue Size11,176,713 shares (aggregating up to ₹523.07 Cr)
Fresh Issue9,615,384 shares (aggregating up to
 ₹450.00 Cr)
Offer for Sale1,561,329 shares of ₹10 (aggregating up to ₹73.07 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE

Lot Allocation details

Retail (Min)132₹14,976
Retail (Max)13416₹194,688
Large-HNI (Min)672144₹1,003,392

Allotment Schedule

Basis of AllotmentMonday, February 12, 2024
Initiation of RefundsTuesday, February 13, 2024
Credit of Shares to DematTuesday, February 13, 2024
Listing DateWednesday, February 14, 2024
Cut-off time for UPI mandate confirmation5 PM on February 9, 2024

IPO Reservation

Investor CategoryShares Offered
QIB Shares OfferedNot more than 50% of the Net Issue
Retail Shares OfferedNot less than 35% of the Net Issue
NII (HNI) Shares OfferedNot less than 15% of the Net Issue


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