Capital Small Finance Bank Limited (Mainboard)
Feb 7, 2024 - Feb 9, 2024
| Price | ₹445 - ₹468 |
| Premium | ₹0 |
|---|---|
| Lot size | 32 |
| Allotment | Feb 13, 2024 |
| Listing | Feb 14, 2024 |
| Category | Lot(s) | Qty | Amount | Reserved |
|---|---|---|---|---|
| Retail | 1 | 32 | 14976 | 122245 |
| sHNI | 14 | 448 | 209664 | 1247 |
| bHNI | 67 | 2144 | 1003392 | 2495 |
Last Updated as on 09-Feb-2024 17:57:00
| Category | Offered | Applied | Times |
|---|---|---|---|
| QIBs | 2235343 | 15332864 | 6.86 |
| HNIs | 1676507 | 7090560 | 4.23 |
| HNIs (10+L) | 1117671 | 4058016 | 3.63 |
| HNIs (2-10L) | 558836 | 3032544 | 5.43 |
| Retail | 3911850 | 10180864 | 2.6 |
| Total | 7823700 | 32604288 | 4.17 |
| Total Application : 267,697 | |||
| QIB Interest Cost per share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹4.31 | @8% ₹4.93 | @9% ₹5.54 | @10% ₹6.16 | @11% ₹6.77 | @12% ₹7.39 |
| Big HNI (10+L) Cost per lot (7 Days) |
|---|
| Assuming fix interest of ₹2000 per application Big HNI (10+L) costing for every 1 lot allotment is ₹1452 |
Established in 1999, Capital Small Finance Bank Limited has solidified its position as a notable small finance bank within the Indian financial landscape. Notably, in 2015, Capital SFB achieved a significant milestone by becoming the first non-NBFC microfinance entity to obtain the coveted SFB license. Leveraging its branch-based operating model, the bank has established a robust presence in semi-urban and rural areas.
Catering primarily to middle-income customer segments with an annual income ranging from ₹0.4 to 5 million, Capital Small Finance Bank aspires to become the primary banking partner for these individuals. To achieve this goal, the bank adopts a holistic approach, blending diverse product offerings, exemplary customer service, physical branches, and digital channels seamlessly.
Headquartered in Jalandhar, Punjab, Capital Small Finance Bank has strategically expanded its SFB operations across northern states such as Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and UT Chandigarh.
As of June 30, 2023, the bank has established a strong presence in five states and one union territory, boasting a network of 172 branches and 174 ATMs. Notably, a significant proportion of the bank's branches are strategically situated in rural and semi-urban areas, covering 24 districts and serving approximately 75.90% of the total customer base, both in terms of credit and deposits. This underscores the bank's focused approach towards serving the middle-income demographic, particularly in rural and semi-urban regions.
Furthermore, as of March and June 30, 2023, an overwhelming majority of the bank's loan book—99.82% and 99.84%, respectively—was secured, with a substantial portion of loans (85.16% and 84.66%) 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.
With a dedicated workforce comprising 1,827 employees as of June 30th, 2023, Capital Small Finance Bank remains committed to delivering superior banking services and fostering financial inclusion across its operational areas.
Capital Small Finance Bank IPO Details
| Issue Size | 11,176,713 shares (aggregating up to ₹523.07 Cr) |
| Fresh Issue | 9,615,384 shares (aggregating up to ₹450.00 Cr) |
| Offer for Sale | 1,561,329 shares of ₹10 (aggregating up to ₹73.07 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 35,350,636 |
| Share holding post issue | 44,966,020 |
Capital Small Finance Bank IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Capital Small Finance Bank IPO Lead Manager(s)
- Nuvama Wealth Management Limited
- Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd)
- Equirus Capital Private Limited
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 16.45% |
| Debt/Equity | 0.95 |
| RoNW | 15.33% |
| P/BV | 2.63 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 26.48 | 24.19 |
| P/E (x) | 17.68 | 19.35 |
Company Financials
Capital Small Finance Bank Limited Financial Information (Restated)
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.
| Period | 30 Sep 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
| Assets | 8,390.69 | 7,990.77 | 7,153.92 | 6,371.24 |
| Revenue | 415.22 | 725.48 | 632.40 | 557.27 |
| Profit | 54.39 | 93.60 | 62.57 | 40.78 |
| Net Worth | 711.76 | 610.61 | 515.78 | 450.79 |
| Reserves | 676.41 | 576.36 | 481.74 | 416.88 |
| Borrowing | 572.76 | 721.38 | 498.43 | 616.72 |
| Amount in ₹ Crore | ||||
Strengths:
1. Securing and diversifying its advances portfolio demonstrates prudent risk management practices, reducing dependency on any single sector or borrower.
2. The company has established a retail-focused liability franchise with a significant share of Current Account Savings Account (CASA), indicating a stable and low-cost funding base.
3. A customer-centric approach coupled with a deep understanding of target customers enables the company to tailor products and services to meet customer needs effectively.
4. Streamlined credit assessment processes and risk management practices enhance efficiency and effectiveness in lending operations, ensuring sound credit quality.
5. Demonstrating a consistent track record of growth, the company continually improves its operational and profitability metrics, indicating resilience and adaptability in a competitive market environment.
Risk:
1. The company is subject to strict regulatory requirements and prudential norms. Non-compliance with such laws and regulations could lead to legal and financial consequences, adversely affecting business operations and financial stability.
2. The business's concentration in North India, particularly with approximately 87% of branches in Punjab, exposes it to economic risks specific to the region. Any adverse economic changes could adversely impact financial performance and cash flows.
3. Compliance with prudential norms is essential for the company's operations. Failure to adhere to these norms could result in regulatory sanctions and financial repercussions, impacting business continuity and financial performance.
Capital Small Finance Bank IPO Lead Manager(s)
- Nuvama Wealth Management Limited
- Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd)
- Equirus Capital Private Limited
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: capitalsfb.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html