Capital Small Finance Bank IPO consists of a fresh issue of shares worth INR 450 crores and an offer to sell 15.61 crores of existing equity shares aggregating to INR 73 crores. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges.
Capital Small Finance Bank IPO – Important Details
| Capital Small Finance Bank IPO Date | February 7, 2024 to February 9, 2024 |
| Capital Small Finance Bank IPO Listing Date | February 14, 2024 |
| Capital Small Finance Bank IPO Price | INR 445-468 per share |
| Capital Small Finance Bank IPO Lot Size | 32 Shares |
| Capital Small Finance Bank IPO Total Issue Size | Approx INR 523.07 crores |
| Capital Small Finance Bank IPO Basis of Allotment | February 12, 2024 |
| Capital Small Finance Bank IPO Initiation of Refunds | February 13, 2024 |
| Capital Small Finance Bank IPO Credit of Shares to Demat | February 13, 2024 |
| Capital Small Finance Bank IPO Issue Type | Book Built Issue IPO |
| Capital Small Finance Bank IPO Listing At | BSE, NSE |
Capital Small Finance Bank IPO – Company Profile
Capital Small Finance Bank, established in 2016 as India’s pioneering small finance bank following RBI approval on March 4, offers a comprehensive suite of banking products across Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and Chandigarh.
They prioritize middle-income segments, focusing on semi-urban and rural areas. It offers tailored banking solutions to underserved customers with 41.62% rural, 34.68% semi-urban, and 23.70% urban branches.
Their strategic expansion in North Indian states and Union Territories has fueled advances and deposits growth. With 173 branches, 175 ATMs, and a focus on rural and semi-urban areas, it aims for further expansion.
Capital Small Finance Bank Ltd IPO – Fundamental Analysis
Capital Small Finance Bank Ltd’s IPO showcases a bank with consistent revenue growth, impressive profit increases, and enhanced shareholder value. Its solid financial performance and operational efficiency make it a compelling investment opportunity in the small finance banking sector.
Revenue Growth:
The bank has experienced steady revenue growth, from ₹5,114.39 million in 2021 to ₹6,760.07 million in 2023. This consistent increase signifies a robust business model and an expanding customer base.
Equity Expansion:
Equity has grown from ₹4,507.9 million in 2021 to ₹6,106.1 million in 2023, reflecting investor confidence and the bank’s ability to retain earnings for future growth.
Profitability:
Profit after tax has grown substantially, nearly doubling from ₹1,395.56 million in 2021 to ₹2,606.17 million in 2023, showcasing the bank’s efficiency in generating profits and managing its operations effectively.
Return on Net Worth (RoNW):
The RoNW has improved from 9.05% in 2021 to 15.33% in 2023, indicating the bank’s increasing ability to generate shareholder equity returns.
Net Asset Value (NAV) per Equity Share:
The NAV per equity share has increased from ₹132.93 in 2021 to ₹178.27 in 2023, suggesting an enhancement in the intrinsic value of the bank’s shares.
Diluted EPS:
The Diluted EPS has seen a significant increase, indicating a strong growth in earnings available to shareholders, from ₹11.98 in 2021 to ₹27.21 in 2023.
Total Assets and Liabilities:
The bank’s total assets and liabilities have both grown, with assets increasing from ₹63,712.38 million in 2021 to ₹79,907.74 million in 2023. This growth in assets more than liabilities indicates a solid expansion and lending activity.
Operating Margin and Return on Assets:
The operating margin and return on assets (ROA) have both improved, demonstrating the bank’s growing operational efficiency and asset utilization.
Capital Small Finance Bank Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 5114.39 | 5,782.18 | 6,760.07 |
| Equity (₹ in Million) | 4,507.9 | 5,157.81 | 6,106.1 |
| Expenses (₹ in Million) | 5,164.89 | 5,698.34 | 6,318.86 |
| Profit and Loss After Tax (₹ in Million) | 1,395.56 | 1,888.57 | 2,606.17 |
| RoNW (%) | 9.05 | 12.13 | 15.33 |
| NAV per Equity Share (₹) | 132.93 | 151.50 | 178.27 |
| Diluted EPS only (₹) | 11.98 | 18.22 | 27.21 |
| Total Assets (in millions) | 63,712.38 | 71,539.21 | 79,907.74 |
| Total Liabilities (in millions) | 59,204.48 | 66,381.4 | 73,801.64 |
| Operating Margin (%) | 1.21 | 1.66 | 1.93 |
| Return on Assets (%) | 0.69 | 0.92 | 1.22 |
Capital Small Finance Bank IPO Peer Comparison
Capital Small Finance Bank Limited excels with a high RoNW of 15.33% and an impressive EPS of ₹27.21, showcasing strong profitability among its peers. Its high NAV per equity share also underscores robust financial health compared to other small finance banks.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Capital SmallFinance BankLimited | 7,254.82 | 10 | NA | 27.35 | 27.21 | 15.33 | 178.27 |
| IDFCFirstBank | 271,950.91 | 10 | 21.19 | 3.98 | 3.92 | 9.61 | 39.06 |
| AU Small Finance Bank Limited | 92,398.73 | 10 | 35.47 | 21.86 | 21.74 | 13.00 | 164.64 |
| Equitas Small Finance Bank Limited | 48,314.64 | 10 | 24.21 | 4.71 | 4.67 | 11.21 | 46.44 |
| ESAF SFB | 31,415.72 | 10 | 10.29 | 6.73 | 6.71 | 17.63 | 38.15 |
| Suryoday Small Finance Bank Limited | 12,811.05 | 10 | 24.21 | 7.32 | 7.32 | 4.90 | 149.28 |
| Ujjivan Small Finance Bank Limited | 47,541.86 | 10 | 10.15 | 5.88 | 5.87 | 26.45 | 21.27 |
Capital Small Finance Bank Ltd IPO Objective
The main objective of Capital Small Finance Bank is to augment the company’s capital base and anticipate the benefits of listing on stock exchanges.
Capital Small Finance Bank IPO Risks And Challenges
Capital Small Finance Bank risks include penalties for non-compliance, contingent liability impact on financial stability, and competition affecting market standing and profitability. Vigilance and strategic planning are essential for mitigation.
- The bank is regulated under the Banking Regulation Act of 1949 and must comply with RBI directives, including restrictions on ownership, minimum capital requirements, and voting rights. Non-compliance may result in penalties, increased scrutiny, or license termination.
- The bank’s contingent liabilities risk its financial stability, especially if a significant portion materializes. Uncertainty exists regarding customers honoring commitments, potentially impacting financial conditions, cash flows, and operations.
- The bank faces stiff competition from diverse players in India’s banking sector, including SFBs, NBFCs, public and private banks, and fintech firms, potentially affecting its market standing and profitability.
Capital Small Finance Bank Limited IPO – Industry & Market Potential
Small finance and payment banks expanding into rural areas can expect faster growth due to untapped potential. SFBs can capitalize on opportunities, gain market share, and penetrate regions deeply, mainly benefiting non-NBFC entities.
MSME loans grew 17% CAGR from Fiscal 2016-2023, impacted by the NBFC crisis and COVID-19. Fiscal 2023 rebounded, reaching ₹26.4 trillion. Future growth is expected at 12-14% CAGR from Fiscals 2023-2026.
Indian housing finance market saw a 15% CAGR from fiscal 2016-2023, with 14% growth in fiscal 2022 despite pandemic effects and an 18% credit growth in fiscal 2023 driven by pent-up demand and focus on housing penetration.
Capital Small Finance Bank Ltd IPO – Type of Offer
Capital Small Finance Bank plans a fresh issue of shares, seeking INR 450 crores to augment the company’s capital needs. Additionally, the company proposes an offer for sale, intending to sell 15.61 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 450 crores. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges.
- Offer for sale: Capital Small Finance Bank is offering to sell 15.61 crore existing shares.
Capital Small Finance Bank Limited IPO Offer Size
The offer size of Capital Small Finance Bank is INR 523 crores, consisting of fresh issue of shares totaling INR 450 crores and the sale of 15.61 crores of existing equity shares. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges.
Capital Small Finance Bank Ltd IPO Allotment Structure
Capital Small Finance Bank allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Capital Small Finance Bank IPO?
To apply for the Capital Small Finance Bank IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Capital Small Finance Bank IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Capital Small Finance Bank Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Capital Small Finance Bank IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Capital Small Finance Bank IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Capital Small Finance Bank IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Capital Small Finance Bank IPO:
Registrar’s Website: Visit the website of Link In Time India Private Limited, the registrar of the Capital Small Finance Bank IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Capital Small Finance Bank IPO Offer Registrar
The registrar for the Capital Small Finance Bank IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
C-101, 1st Floor
247 Park
Lal Bahadur Shastri Marg
Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Tel: +91 810 811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Capital Small Finance Bank IPO FAQs
The allotment date of Capital Small Finance Bank IPO is February 12, 2024.
The price band of the shares issued by the company is INR 445-468 per share.
Capital Small Finance Bank IPO consists of a fresh issue of shares worth INR 450 crores and an offer to sell 15.61 crores of existing equity shares. The company aims to augment its working capital needs and anticipate the benefits of listing on stock exchanges.
The listing date of the Capital Small Finance Bank IPO is February 14, 2024.
