Capital Small Finance Bank IPO: The initial public offering (IPO) of Capital Small Finance Bank was subscribed four times on Friday, the third and last day of the offer. According to data available on NSE, 81,47,373 shares have been offered under this issue worth Rs 523 crore. Overall, bids were made for 3,26,04,288 shares on the third day. The retail individual investors (RII) segment was subscribed 2.49 times while the non-institutional investors category was subscribed 4.05 times. Apart from this, the section reserved for eligible institutional buyers has received subscription of 6.64 times. The allotment process will be finalized by the bank on February 12. Capital Small Finance Bank IPO will be listed on BSE and NSE. The listing is likely to happen on February 14.
Bank raised Rs 157 crore from anchor investors
Small Finance Bank has issued new shares worth Rs 450 crore under IPO. Apart from this, there is also an offer for sale (OFS) of 15,61,329 equity shares. The price range for the IPO has been fixed at Rs 445-468 per share. Capital Small Finance Bank had raised Rs 157 crore from anchor (large) investors on Tuesday before the issue. In the year 2015, this bank became the first non-NBFC microfinance unit to obtain SFB license. This small finance bank has a strong presence in semi-urban and rural areas. The bank is trying to collect Rs 523.07 crore from the market through IPO.
How is the performance of the bank?
The bank targets the middle income customer segment with an annual income of ₹0.4-5 million. They aim to become 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 grew by 14.72% and profit after tax (PAT) grew by 49.59% between the financial year ending March 31, 2023 and March 31, 2022.
What will the company do with the money?
The Bank proposes to use the net proceeds from the fresh issue to enhance the Tier-I capital base of the Bank to meet its future capital requirements. As the Bank is growing its loan portfolio and asset base, the Bank is expected to require additional capital to meet the capital adequacy ratios applicable in respect of its business. The Bank intends to increase its loan advances which will require Tier-I capital to comply with the applicable capital adequacy requirements. Additionally, the proceeds from the fresh issue will also be used to meet expenses related to the offer.