Capital Small Finance Bank's initial public offering (IPO) saw decent demand on the final day of bidding. The IPO began offering on Wednesday (February 7) and closed today (February 9). On the last day, the IPO received bids for 3,26,04,256 shares against 8,147,373 shares available for offer, representing an oversubscription of 04 times.
The retail portion of the public issue was subscribed 2.49 times and the non-institutional investor (NII) section was subscribed 4.05 times, showing solid demand. The qualified institutional investor (QIB) portion was at the highest level of subscription, reaching 6.64 times the allocated shares.
Please also read ESAF SFB stock fell more than 16% despite a 200% year-on-year jump in net profit.Here's why
Through this issue, the company INR523 million. The issuance represents a total of 960 million new shares. INR450 million shares and total offering of 16 million shares (OFS) INR730.7 billion yen. Through this the promoter and external investor will dilute his 5% of the pre-issue holdings.
The offer price range has been fixed as follows: INRStock Prices range from $445 to $468 per share, par value INR10 pieces each.
Nuvama Wealth Management Limited, Dam Capital Advisors and Equirus Capital Private Limited are the lead managers for the Capital SFB IPO and Link Intime India Private is the registrar for the issue.
About Capital Small Finance Bank
The Jalandhar-based bank started operations in 2016 after converting from a local bank and is 24% owned by the promoter family led by Sarjit Singh Samra and his family. In 2015, Capital Small Finance Bank became the first non-NBFC microfinance entity to obtain his SFB license.
The company follows a branch-based operating model and has a strong presence in semi-urban and rural areas. The company's listed peers are AU SFB, Equitas SFB, Ujjivan SFB, Jana SFB, ESAF SFB, Utkarsh SFB, Fincare SFB, and Suryoday SFB.
The bank offers a wide range of banking products including agricultural loans, MSME and trade loans (working capital and machinery loans), housing loans (mortgage loans and mortgage loans).
Please also read: LIC's journey so far: A humble debut, a long rough patch, and a glorious rebound, this stock has seen it all.
The bank said its DRHP has the best asset quality among SFBs with GNPA of 2.77% and NNPA of 1.36% as of FY2023. He said the average GNPA was the lowest at 2.45%, which is among the highest in the world. The third lowest average NNPA among SFBs from FY2021 to FY2023 is 1.28%.
Capital Small Finance Bank said in its DRHP report, “We are the only SFB to show an increasing trend in profit after tax, RoA and RoE in both FY2022 and FY2023, against comparable SFBs. “This shows that we are consistently outperforming.”
Meanwhile, the IPO allotment process is expected to be completed by February 12. Refunds will be given to those who were not allotted shares, starting on February 13th. The shares will be credited to the allottee and the shares will be available for use. Since this is a mainboard IPO, the shares will be listed on both his NSE and BSE.
Disclaimer: We recommend checking with a certified professional before making any investment decisions.
Here is a comprehensive three-minute summary of what Finance Minister Nirmala Sitharaman said in her budget speech: Click to download!
