Capital Small Finance Bank IPO: A Comprehensive Guide for Investors

3 Feb 2024 , 11:41 AM

Capital Small Finance Bank, based in Punjab, is gearing up for its initial public offering (IPO) to raise up to ₹523.07 Crore, scheduled to open on February 7. The price range for the offer has been established at ₹445-468 per share.

Closing on February 9, the anchor book bidding for the issue will commence on February 6.

The IPO comprises fresh shares valued at ₹450 Crore and an offer-for-sale (OFS) of 15,61,329 equity shares worth ₹73.07 Crore by existing shareholders, including investors Oman India Joint Investment Fund II and Amicus Capital.

The company’s promoters hold a 23.96% stake, while the remaining 76.04% is owned by public shareholders, such as Oman India Joint Investment Fund II, Amicus Capital, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, Small Industries Development Bank of India, and Max Life Insurance Company.

Funds raised from the fresh issue will primarily be utilized to bolster the bank’s Tier-I capital base to meet future capital requirements.

Operating in Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh, Capital Small Finance Bank serves customers in agriculture, MSME and trading (working capital, machinery loans, etc.), and mortgages (housing loans and loans against property).

The IPO allocation has reserved 50% for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors. Bids can be made for a minimum of 32 equity shares and in multiples of 32 shares thereafter, with a minimum investment of ₹14,976 for 32 shares and a maximum investment of ₹1,94,688 for 416 shares for retail investors, adhering to the IPO investment limit of ₹2 Lakh.

The basis of allotment is set to be finalized by February 12, with equity shares credited to successful investors’ demat accounts by February 13. Trading of equity shares on the bourses is expected to commence on February 14.

Nuvama Wealth Management, DAM Capital Advisors, and Equirus Capital serve as the book running lead managers for the issue.