IPO Details
RHP/DRHPIssue Date
21 May - 23 May'25
Investment/lot
₹ 120000
Price Range
57 - 60
Lot Size
2000
IPO Size
₹ 25.66 cr
Schedule of Dar Credit & Capital IPO
Start date
21/05/2025
End date
23/05/2025
Allotment of bids
26/05/2025
Refund Initiation
27/05/2025
Listing on exchange
28/05/2025
About Dar Credit and Capital Ltd IPO
The IPO of Dar Credit and Capital Ltd comprises a fresh issue of up to 42,76,000 equity shares of face value of ₹ 10 each. There is no offer for sale in this IPO. The total issue size is ₹25.66 crores in the upper price band.
Objectives of Dar Credit and Capital Ltd IPO
- Augment the capital base of the company
- General corporate purposes
- Issue expenses
Dar Credit and Capital Ltd IPO Valuation
Dar Credit and Capital Ltd IPO Share Offer and Subscription Details
| Investor | Share Category |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Applicants | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
India has a diversified financial sector undergoing rapid expansion both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non- banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities.
India’s financial services industry has experienced huge growth in the past few years. This momentum is expected to continue. India’s private wealth management Industry shows huge potential. India is expected to have 16.57 lakh HNWIs in 2027. This will indeed lead India to be the fourth-largest private wealth market globally by 2028. India’s insurance market is also expected to reach US$ 250 billion by 2025. This will further offer India an opportunity of US$ 78 billion in additional life insurance premiums from 2020-30.
Company Information
Dar Credit and Capital Ltd offers three primary types of financial products: (i) Personal Loans, (ii) Unsecured MSME Loans, and (iii) Secured MSME Loans. The company specialises in offering credit solutions to low-income individuals, particularly those in class-four (Group D) employment roles, such as cleaners, sweepers, and peons working in municipalities. The company also extends credit to small-scale shopkeepers and vendors, with a strong focus on empowering women entrepreneurs.
Dar Credit and Capital Ltd Strengths
Quick and Efficient Loan Processing Along with Flexible Lending Practices
As an NBFC, the company is known for its streamlined processes and quick decision-making, which often leads to faster loan approvals and disbursements compared to banks. This agility is particularly beneficial for businesses needing quick access to working capital or individuals seeking immediate financing.
The use of digital platforms and technology in the loan application process further enhances the efficiency of loan disbursement, reducing paperwork and turnaround time. The company has greater flexibility in its lending practices, allowing it to cater to a wider range of customer needs.
Strong Understanding of Local Markets
The company has developed a profound understanding of local markets and regional economies, which empowers it to assess the financial needs of local businesses and individuals with greater accuracy and effectiveness.
This localised expertise enables it to craft financial products that are not only tailored to meet the unique requirements of its customers but also resonate with their specific contexts and challenges. By maintaining strong relationships with its clients, it fosters trust and loyalty, which are essential for long-term partnerships.
Innovative Use of Technology
The company utilises advanced technology to enhance its credit assessment, risk management, and customer service processes, enabling it to quickly process applications and disburse loans. By leveraging digital platforms, it has a fully digitised loan originating system which provides digitised facilities from loan sourcing to disbursement to collection.
Additionally, it increasingly employs technologies like data analytics and artificial intelligence for credit scoring, fraud detection, and gaining insights into customer behaviour.
Attractive Interest Rates and Shorter Processing Time
The company offers attractive interest rates combined with shorter processing times, making its financial products highly appealing to borrowers. By providing competitive interest rates, it ensures that its clients benefit from lower borrowing costs, which is particularly advantageous for both individuals and small businesses seeking to manage their finances effectively. This commitment to affordability not only enhances customer satisfaction but also fosters long-term relationships built on trust and value.
Strong Underwriting Process and Risk Management Strategies
The company employs a strong underwriting process and robust risk management policies that are integral to its commitment to maintaining financial stability and safeguarding our clients’ interests. The underwriting process is meticulously designed to assess each applicant’s creditworthiness comprehensively, utilising advanced analytics and data-driven insights to evaluate various risk factors effectively.
This thorough evaluation not only helps it make informed lending decisions but also ensures that it extends credit to individuals and businesses that demonstrate the capacity to meet their obligations.
Risks of Dar Credit and Capital Ltd
- Interest Rate Risk
The company’s business is vulnerable to interest rate risk, and volatility in interest rates could have an adverse effect on its net interest income and net interest margin, thereby affecting its results of operations.
- Regional Risks
The company’s gross loan portfolio is derived from loans originating from various states, and any adverse developments in these regions may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Exposure to High-risk Customer Segment
The NBFC industry in India faces certain risks due to the category of customers that it services, which are not generally associated with other forms of lending. As a result, it may experience increased levels of nonperforming assets and related provisions and write-offs that may adversely affect its business, financial condition and results of operations.
All Financial Information about Dar Credit & Capital
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Total Income (in ₹ crores) | Basic EPS in ₹ | Return on Net Worth (in %) | NAV Per Share in ₹ |
|---|---|---|---|---|
Dar Credit and Capital Ltd | 33.0138 | 3.97 | 6.08 | 65.25 |
Spandana Sphoorty Financial Ltd | 2533.95 | 70.42 | 13.74 | 511.18 |
Muthoot Microfin Ltd | 2285.49 | 30.2 | 16.03 | 164.49 |
Credit Access Grameen Ltd | 5172.65 | 90.88 | 22.01 | 412.23 |
Fusion Microfinance Ltd | 2412.42 | 50.3 | 17.74 | 281.93 |
Satin Creditcare Network Ltd | 2240.5278 | 44.34 | 18.16 | 218.28 |
Anchor Investor Bidding Date May 20, 2025
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Kfin Technologies Ltd
- Book Running Lead Manager: Gyr Capital Advisors Pvt Ltd
Business Model
The company offers:
-
Personal loans to low-income individuals, primarily class-four permanent employees such as cleaners, sweepers, and peons working in municipalities.
-
Unsecured MSME loans to people in rural and semi-urban areas predominantly in West Bengal, Bihar and Jharkhand.
-
MSME loans which are specifically tailored to support the financial needs of small and medium-sized business enterprises, providing them with the necessary resources to sustain and grow their operations.
Company Growth Trajectory
The revenue from operations of Dar Credit and Capital Ltd grew from ₹24.4683 crores in FY 22 to ₹32.0488 crores in FY 24. Its EBITDA margin grew from 64.55% in FY 22 to 66.40% in FY 24, while PAT margin grew from 10.26% in FY 22 to 12.38% in FY 24. Strong understanding of local markets and an experienced management team have contributed to the company’s growth over the years.
Market Position
Over the past 30 years, Dar Credit and Capital Ltd has developed a profound understanding of the financial needs of underbanked and underserved customers. Throughout this journey, the company has not only gained insights into customer behaviour and requirements within this segment but have also implemented various initiatives to enhance the customer experience. In addition to its headquarters in Kolkata and regional office in Jaipur, the company operates through its branch offices across West Bengal, Rajasthan, Bihar and Jharkhand. Also, camp offices are set up in the states of Madhya Pradesh and Gujarat.
Dar Credit and Capital Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 33.0138 | 25.5697 | 24.4208 |
Profit Before Tax (in ₹ crores) | 5.2632 | 3.9121 | 3.3446 |
Profit After Tax (in ₹ crores) | 3.9683 | 2.93 | 2.5094 |
EPS in ₹ | 3.97 | 2.93 | 2.50 |
Dar Credit and Capital Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 5.2632 | 3.9121 | 3.3446 |
Net Cash Flow from / (used in) Operating Activities (in ₹ crores) | (31.0718) | (14.2347) | 20.9318 |
Net Cash Flow from / (used in) Investing Activities (in ₹ crores) | (0.7094) | 10.8419 | (7.8052) |
Net Cash Flow from / (used in) Financing Activities (in ₹ crores) | 42.8381 | 12.0213 | (13.8965) |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 33.7801 | 22.7232 | 14.0947 |
How to Check Allotment Status of Dar Credit and Capital Ltd?
1. Visit the Registrar’s Website
- Visit the official website of Kfin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’ dropdown
- Click on any one of the links
- Choose the company name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’
2. Check on the NSE Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Dar Credit and Capital Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Dar Credit and Capital Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Dar Credit & Capital IPO FAQs
What is the minimum lot size required for Dar Credit & Capital IPO?
The minimum lot size is 2000 shares and the investment required is ₹120000.
What is the price band of the Dar Credit & Capital IPO?
The price band of Dar Credit & Capital IPO is ₹57 to ₹60.
Where can I read more about Dar Credit & Capital business?
You can read more about Dar Credit & Capital and its IPO from the company’s red herring prospectus (RHP) here.
What is the Dar Credit and Capital Ltd IPO?
The IPO of Dar Credit and Capital Ltd comprises a fresh issue of up to 42,76,000 equity shares of face value of ₹ 10 each.
When will the IPO of Dar Credit and Capital Ltd go live?
The IPO of Dar Credit and Capital Ltd will go live on May 21, 2025. It closes on May 23, 2025.
From where can I read more about the IPO of Dar Credit and Capital Ltd?
You can read more about the IPO of Dar Credit and Capital Ltd from the company’s red herring prospectus here.
