Capital Small Finance Bank IPO ends with 4x subscription

Published on Feb 12, 2024 12:23

The initial public offer (IPO) of Capital Small Finance Bank received bids for 3,26,06,336 shares as against 81,47,373 shares on offer. The issue was subscribed 4 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 6.64 times. The Non Institutional Investors (NIIs) category was subscribed 4.05 times. The Retail Individual Investors (RIIs) category was subscribed 2.49 times.

The issue opened for bidding on 7 February 2024 and it closed on 9 February 2024. The price band of the IPO was fixed at Rs 445-468 per share.

The offer comprised of fresh issue of equity shares aggregating up to Rs 450 crore and offer for sale of up to Rs 15,61,329 equity shares.

None of the promoter and promoter group entities is participating in the OFS. The promoter shareholding would decline to 18.8% post IPO from 24.0% pre-IPO.

The bank proposed to utilize the net proceeds from the offer towards augmenting Bank�s Tier I capital base to meet future capital requirements.

The listing of the bank is also in line with the terms of the RBI SFB licensing guidelines, requiring the bank to list its equity shares on the stock exchanges within three years from reaching network of Rs 500 crore.

Ahead of the IPO, Capital Small Finance Bank on Tuesday, 6 February 2024 raised Rs 156.92 crore from anchor investors. The board allotted 33.53 lakh shares at Rs 468 each to 19 anchor investors.

Capital Small Finance Bank was first small finance bank (SFB) in India to commence operations on 24 April 2016 pursuant to RBI�s approval dated 4 March 2016. It was one of the ten entities to receive the SFB license in 2015. The bank has a long understanding of needs of target customers with the background as a local area bank since incorporation in 1999.

Headquartered in Jalandhar, the bank operates in five states of Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh and Union Territory of Chandigarh. The bank has 173 branches and 175 ATMs with 76.30% of branches and 75.75% of total customers are located in rural and semi-urban areas. The bank had 7,25,037 customers (both credit and deposit) end September 2023.

The firm reported a net profit of Rs 54.39 crore and net total income of Rs 200.21 crore for the six months ended on 30 September 2023.