Capital Small Finance Bank IPO GMP, Details, Date, Price 2024

Capital Small Finance Bank Limited is coming up with its Initial public offering. The IPO will be open for subscription on February 07, 2024

Capital Small Finance Bank IPO Details

 

Capital Small Finance Bank IPO Dates 7 – 9 Feb 2024
Capital Small Finance Bank IPO Price INR 445 – 468 per share
Fresh issue INR 450 crore
Offer For Sale 1,561,329 shares (INR 69.48 – 73.07 crore)
Total IPO size INR 519.48 – 523.07 crore
Minimum bid (lot size) 32 shares (INR 14,976)
Face Value  INR 10 per share
Retail Allocation 35%
Listing On BSE, NSE

 

Capital Small Finance Bank IPO – Date Schedule

 

IPO Opening Date 07 February 2024
IPO Closing Date 09 February 2024
Finalization of Basis of Allotment 12 February 2024
Refunds Initiation 13 February 2024
Transfer of shares to demat accounts 13 February 2024
Listing Date of IPO 14 February 2024

 

Capital Small Finance Bank IPO – About Company 

 

Capital Small Finance Bank Limited operates as a small finance bank and holds the distinction of being the first non-NBFC microfinance entity to obtain the SFB license in 2015. With a branch-centric operational model, the bank has established a robust presence in semi-urban and rural areas.

The bank focuses on serving middle-income customers with an annual income ranging from ₹0.4 to 5 million. Through a combination of diverse product offerings, exemplary customer service, physical branches, and digital channels, Capital Small Finance Bank aspires to be the primary banking choice for this customer segment.

Headquartered in Jalandhar, Punjab, the bank strategically extends its SFB operations across northern states of India, including Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and UT Chandigarh.

As of June 30, 2023, Capital Small Finance Bank operates in five states and one union territory, boasting a network of 172 branches and 174 ATMs. The majority of its branches are situated in rural and semi-urban areas, spanning 24 districts and catering to approximately 75.90% of the total customers in terms of credit and deposits. This underscores the bank’s niche focus on the middle-income group, particularly in rural and semi-urban regions.

As of March 31 and June 30, 2023, nearly 99.82% and 99.84% of the bank’s loan book, respectively, were secured, with 85.16% and 84.66% of loans backed by immovable properties.

The average ticket size for Capital Small Finance Bank’s agriculture, MSME, and trading, as well as mortgage lending products, stood at ₹1.23 million, ₹1.82 million, and ₹1.16 million, respectively, as of March 31, 2023.

As of June 30, 2023, the bank employs a total of 1,827 individuals to support its organizational operations.

 

Capital Small Finance Bank IPO
Capital Small Finance Bank IPO

Capital Small Finance Bank IPO – Industry Overview 

 

With small finance banks and payments bank increasing their reach and expanding into rural areas and increasing financial awareness, faster growth in rural areas can be expected in the future given the huge untapped potential.

Between the end of Fiscal 2015 and the end of Fiscal 2023, the number of credit accounts in semi-urban areas grew at a CAGR of 10% and between the end of Fiscal 2015 and the end of Fiscal 2023, the number of deposit accounts grew at a CAGR of 6%.

The number of bank credit accounts in rural areas grew at a CAGR of 10% between the end of Fiscal 2015 and the end of Fiscal 2023 and the number of bank deposit accounts grew at a CAGR of 3% between the end of Fiscal 2015 and the end of Fiscal 2023. 

 

Capital Small Finance Bank IPO – Financial Performance

 

  FY 2022 FY 2023 H1 FY 2024
Revenue 632.40 725.48 415.22
Expenses 569.83 631.89 360.83
Net income 188.86 260.62 287.57
Margin (%) 29.86 35.92 69.26

Figures in INR Crores

 

Capital Small Finance Bank IPO – Valuations & Margins

 

FY 2021 FY 2022 FY 2023
EPS 11.98 18.22 27.21
PE ratio 16.35 – 17.20
RONW (%) 9.05 12.13 15.33
NAV 132.93 151.50 178.27
EBITDA (%) 12.60 15.91 19.96
Debt/Equity

 

Competitive Strengths

  • Retail Focused Liability Franchise with High Share of CASA;
  • Secured and diversified advances portfolio;
  • Streamlined credit assessment processes and risk management practices;
  • Customer centric approach and understanding of target customers;
  • Consistent track record of growth with constantly improving operational and profitability metrics;
  • Professional and experienced leadership team; and
  • From Fiscal 2021 to 2023, the company’s operating profit and profit after tax grew at a CAGR of 44.23% and 51.49%, respectively.

 

Object Of The Issue

  • The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting our Bank’s Tier-I capital base to meet the Bank’s future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer. The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.

 

Capital Small Finance Bank IPO GMP

 

Date Day-wise IPO GMP Kostak Subject to Sauda
2 February 2024 25

 

Capital Small Finance Bank IPO – Allotment Status

Capital Small Finance Bank IPO allotment status will be available on Link Intime’s website. Click on this link to get allotment status.

Lots Size & Price

 

Application Lots Shares Amount ( Cut-Off)
Retail (Min) 1 30 14,976
Retail (Max) 13 406 1,94,688
S-HNI (Min) 14 448 2,09,664
S-HNI(Max) 66 2,112 9,88,416
B-HNI(Min) 67 2,114 10,03,392

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Disclaimer-The content presented here is intended solely for analytical and educational purposes. If you consider investing, it is strongly advised to conduct your own thorough research. We do not endorse or recommend any specific stocks or initial public offerings (IPOs).

 

 

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