Capital Small Finance Bank IPO: Check issue date, price band and other details

Capital Small Finance Bank initial public offering (IPO) will open for subscription on February 7, 2024 and closes on February 9, 2024.  

The price band of the offer has been fixed at ₹445 to ₹468 per share, with a face value of ₹ 10. Bids can be made for a minimum of 32 shares and in multiples of 32 equity shares thereafter.

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Capital Small Finance Bank IPO is a book built issue of ₹523.07 crores. The issue is a combination of fresh issue of 0.96 crore shares aggregating to ₹450 crores and offer for sale of 0.16 crore shares aggregating to ₹73.07 crores.

The bank proposes to utilize the net proceeds from the fresh issue towards augmenting the bank’s tier – I capital base to meet its future capital requirements. As the Bank continues to grow its loan portfolio and asset base, the Bank expects to require additional capital in order to continue to meet applicable capital adequacy ratios with respect to its business. The bank intends to grow its loan advances which would require Tier – I capital to comply with the applicable capital adequacy requirements. Further, the proceeds from the fresh issue will also be used towards meeting the expenses in relation to the offer.

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Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), DAM Capital Advisors Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the offer.

Furthermore, around 50 percent of the net issue will be available for QIB, and not less than 35 percent of the issue is reserved for retail investors and not less than 15 percent of the issue will be available to NII investors.

The promoters of the Bank are Sarvjit Singh Samra, Amarjit Singh Samra, Navneet Kaur Samra, Surinder Kaur Samra and Dinesh Gupta.

Capital Small Finance Bank Limited became the first non-NBFC microfinance entity to receive the SFB license in 2015. The company has a strong presence in semi-urban and rural areas with a branch-based operating model.

The allotment for the Capital Small Finance Bank IPO is expected to be finalized on Monday, February 12, 2024. Capital Small Finance Bank IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, February 14, 2024.

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The bank targets middle-income customer segments with an annual income of ₹0.4-5 million. They aim to be the primary banker for these customers through a mix of product offerings, customer service, physical branches, and digital channels.

Capital Small Finance Bank Limited's revenue increased by 14.72% and profit after tax (PAT) rose by 49.59% between the financial year ending with March 31, 2023 and March 31, 2022.