Capital Small Finance Bank launched its initial public offering on Wednesday, raising up to Rs 523 million. The IPO was oversubscribed 0.50 times (50%) on the first day.
The IPO price band has been fixed at Rs 445-468 per share. The three-day IPO ends on Friday.
The issue consists of a fresh issue of Rs 450 crore and an offering of the remaining Rs 730 crore, through which promoters and external investors will be diluted by 5% of their pre-issue holdings. Companies selling OFS shares include Oman-India Joint Investment Fund II, American Capital, and Amicus Capital Private Equity.
The company has raised Rs 157 million from key investors. The Jalandhar-based bank has allotted 33.53 million shares to 19 funds at Rs 468 per share, which is also at the upper end of the price range. Whiteoak Capital Fund, LC Pharos Multi Strategy Fund, Nippon Life India Trustee Ltd, 360 One Fund, Edelweiss Tokyo Life Insurance Co., Ltd., HDFC Life Insurance Co., Ltd., and ICICI Prudential Life Insurance Co., Ltd. participated in the anchor round.
Capital Small Finance Bank started operations in 2016 after converting from a local bank and is 24% owned by the promoter family led by Sarvjit Singh Sarma and his family. The bank provides fully secured loans to small businesses, home loans and farmers in Punjab, Delhi, Haryana, Rajasthan, Himachal Pradesh and Union Territory of Chandigarh.
As of 11 a.m. Thursday, the IPO's oversubscription rate was 0.65 times, or 65%.
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Institutional investors: 0.29x or 29%.
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Non-institutional investors: 0.52x or 52%.
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Individual investors: 0.90% times or 90%.
