₹ 14976 / 32 shares
IPO Details
RHP/DRHPIssue Date
07 Feb - 9 Feb'24
Investment/lot
₹ 14976
Price Range
445 - 468
Lot Size
32
IPO Size
₹ 523.07 Cr
IPO Listing Details
Listing On
14 Feb'24
Issue Price
468
Listed Price
₹ 430
Retail Gain/Listing Gain
â–¼-8.07%
IPO Timeline
Company Background
Capital Small Finance Bank is India’s first small finance bank. It offers a range of banking products on the asset and liability side, across multiple states and in the Union Territory of Chandigarh.
The company’s asset products primarily include agriculture loans, MSME and trading loans (working capital, machinery loans etc.) and mortgages (housing loans and loans against property).
With that, let's take a look at the competitive strengths and risk factors for Capital Small Finance Bank Limited:
Competitive Strengths
Retail-focused liability franchise with a high share of CASA
The company has created a retail-centric deposit franchise with a high share of CASA deposits with the CASA ratio increasing from 40.08% in Fiscal 2021 to 41.88% in Fiscal 2023.
Secured and diversified portfolio
The company has built a secured and granular loan book over the years with a focus on income generation. As of March 31, 2023, and September 30, 2023, 99.82% and 99.85% of the loan book, being Rs. 54,975.90 million and Rs. 58,571.93 million was secured with 85.16% and 84.26% respectively of the loans being secured with immovable properties. The company has a well-diversified portfolio across products, which helps in mitigating risk and optimising resources.
Consistent track record of growth with constantly improving operational and profitability metrics
Since converting to an SFB, the company’s operating profit has grown at a CAGR of 44.23% from Rs. 714.86 million in Fiscal 2021, to Rs. 1,487.04 million in Fiscal 2023, and was Rs. 753.84 million as of the six months ended September 30, 2023.
Risk Factors
- The company has settled a matter with SEBI in the past, in connection with allotment of equity shares to more than 49 investors.
- The company must ensure compliance with various regulatory requirements.
- The company is subject to inspections by the RBI due to non-compliances in the ordinary course, in the past.
Key Strategies
- Continue to grow the loan book organically with a focus on secured lending.
- Strengthen the company’s liability franchise.
- Leverage technology and data analytics for scalability and profitable growth.
Capital Small Finance Bank Ltd Key Financials
Here are the key financials for Capital Small Finance Bank Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•4m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for Capital Small Finance Bank Ltd IPO?
Here are the steps to apply for Capital Small Finance Bank Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
Capital Small Finance Bank Ltd IPO FAQs
When is Capital Small Finance Bank Ltd IPO listing date?
Capital Small Finance Bank Ltd will list on 2024-02-14.
What is the issue size of Capital Small Finance Bank Ltd IPO?
523.07 is the issue size of Capital Small Finance Bank Ltd IPO.
What is the minimum lot size required for Capital Small Finance Bank Ltd IPO?
The minimum lot size is 32 shares and the investment required is ₹14976.
What is the price band of the Capital Small Finance Bank Ltd IPO?
The price band of Capital Small Finance Bank Ltd IPO is ₹445 to ₹468.
Where can I read more about Capital Small Finance Bank Ltd business?
You can read more about Capital Small Finance Bank Ltd and its IPO from the company’s red herring prospectus (RHP) here.
What is the Capital Small Finance Bank Limited IPO?
The Capital Small Finance Bank Limited IPO has an issue size of Rs. 450 crores. The IPO opens for subscription on 7th February 2024 and closes on 9th February 2024.
Who is the Registrar for Capital Small Finance Bank Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
Where can I read more about Capital Small Finance Bank Limited’s business?
You may read more about Capital Small Finance Bank Limited and its IPO from the company’s red herring prospectus (RHP) here:
