- Bid/ Offer will open on Wednesday, February 7, 2024 and close on Friday, February 9, 2024
- The Anchor Investor Bidding Date shall be Tuesday, February 6, 2024;
- Bids can be made for a minimum of 32 Equity Shares and in multiples of 32 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, FEB 5
Oman India-backed Capital Small Finance Bank on Saturday announced its initial public offering of Equity Shares of face value ₹10 will be open for public bidding on Wednesday, February 7, 2023.
The Anchor Investor Bidding Date shall be Tuesday, February 6, 2024. The Offer will open on Wednesday, February 7, 2024 for subscription and will close on Friday, February 9, 2024.
The Price Band of the Offer has been fixed at ₹ 445 to ₹ 468 per Equity Share. Bids can be made for a minimum of 32 Equity Shares and in multiples of 32 Equity Shares thereafter.
The initial public offering comprises a fresh issue of Equity Shares aggregating to ₹450 crore. Existing investors, including Oman India Joint Investment Fund, Amicus Capital, Amicus Capital Partners India Fund and others will offload up to 15,61,329 equity shares from their stake. The lender is looking to raise ₹523.07 crore at the upper end of the IPO price band.
Capital Small Finance Bank was the first non-NBFC microfinance entity to receive the SFB license in 2015. The Jalandhar-based lender has presence in semi-urban and rural areas with a branch-based operating model.
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.
Capital Small Finance Bank targets middle-income customer segments. It has expanded its SFB operations in northern states of India such as Punjab, Haryana, Rajasthan, Himachal Pradesh and union territories, including Delhi and Chandigarh. It had a total of 172 branches and 174 ATMs as of June 30, 2023,
Capital SFB has reserved 50 per cent of the net offer for qualified institutional investors (QIBs), while non-institutional investors (NIIs) will have 15 per cent of shares reserved for them. A total of 35 per cent of the issue is reserved for retail investors.
The promoters of the Bank are Sarvjit Singh Samra, Amarjit Singh Samra, Navneet Kaur Samra, Surinder Kaur Samra and Dinesh Gupta.
For the period ended June 30, 2023, the lender reported a net profit of ₹30.10 crore with a revenue of ₹202.29 crore. Its net profit came in at ₹93.60 crore with a revenue of ₹725.48 crore for the financial year ended on March 31, 2023.
Shares of the SFB will be listed at both BSE and NSE with February 14, Wednesday, as the tentative date of listing
Nuvama Wealth Management, DAM Capital Advisors (formerly IDFC Securities) and Equirus Capital are the book running lead managers of the Capital Small Finance Bank IPO, while Link Intime India is the registrar for the issue.
