Dar Credit and Capital Limited is coming up with an IPO with a fresh issue of 42.76 lakh shares worth INR 25.66 crores. The company aims to augment its capital base to meet future business requirements and fund general corporate purposes. 

Dar Credit and Capital IPO – Important Dates

Dar Credit and Capital Limited IPO – Company Profile

Dar Credit and Capital Limited is a Non-Banking Finance Company (NBFC) offering three core financial products: personal loans, unsecured MSME loans, and secured MSME loans. It primarily serves low-income individuals in class-four employment roles and small-scale vendors.

Incorporated in 1994, the company has built a strong presence with 27 branches and camp offices across 64 districts in six Indian states. As of December 31, it had 24,608 active customers and a moderately diversified loan portfolio.

DCCL leverages a tech-driven approach through digital sourcing, e-KYC, and STP-enabled loan processing using Vijay software from Qbent Technologies. The system supports asset management, fraud checks, and customer service. 

Dar Credit and Capital Ltd IPO Fundamental Analysis 

Dar Credit and Capital Limited’s financial analysis reveals a mixed performance. Revenue has increased, but declining liquidity and rising debt-equity ratio highlight challenges despite asset growth and rising equity, indicating potential operational efficiency. 

• Revenue Trend: The revenue increased from ₹2,556.97 lakhs in March 2023 to ₹3,301.38 lakhs in March 2024. The revenue for the 9-month period ended December 2024 is ₹3,103.24 lakhs.   
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has increased from ₹293.00 lakhs in March 2023 to ₹396.83 lakhs in March 2024, boosting investor confidence. The profit for the 9-month period ended in December 2024 is ₹491.94 lakhs.
• Earnings per Share (EPS): The diluted EPS has increased from ₹2.93 in March 2023 to ₹3.97 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the 9-month period ended in December 2024 is ₹4.92. 
• Return on Net Worth (RoNW): The RoNW has risen from 4.74% to 6.08%, indicating an increase in the company’s ability to generate returns on shareholder equity.
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

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Dar Credit and Capital IPO Financial Analysis

Dar Credit and Capital Limited IPO Peer Comparison

Dar Credit and Capital Ltd shows substantial revenue, Spandana Sphoorty Financial Ltd leads in NAV, Credit Access Grameen Ltd excels in revenue, Fusion Microfinance Ltd, and Satin Creditcare Network Ltd show strength in RoNW and EPS, respectively. 

Dar Credit and Capital Ltd IPO Objective

The main objective of Dar Credit and Capital Limited is to augment the capital base of the company and meet general corporate purposes. 

1. Augment the capital base of the company: The company intends to utilise INR 2,200 lakhs from the Net Proceeds towards augmenting its capital base to meet future business requirements. 

2. General Corporate Purpose: The company proposes to utilise the remaining funds from the Net Proceeds to meet general corporate purposes. 

Dar Credit and Capital IPO Risks And Challenges

Dar Credit and Capital Limited’s risk includes vulnerability to interest rate fluctuations, regional uncertainties, and the nature of its customer base, which could adversely impact operations, financial performance, and business performance. 

• The company is vulnerable to interest rate risk, and any volatility in interest rates may adversely affect its net interest income and net interest margin, which could impact overall financial performance and results of operations.
• 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.
• As an NBFC, the company serves a customer base that is typically more vulnerable than other borrowers. As a result, they may experience increased levels of nonperforming assets and related provisions and write-offs that may adversely affect their business, financial condition and results of operations.

Dar Credit and Capital Ltd IPO – Industry & Market Potential

India’s financial services industry is expanding rapidly, led by mutual funds, insurance, and capital markets. As of March 2024, mutual fund AUM stood at Rs. 53.40 lakh crore, while SIP inflows crossed Rs. 2 lakh crore. The insurance sector reached US$ 54.5 billion in premiums, driven by rising awareness and digital access.

The sector is projected to grow further with UPI, digital wallets, and private wealth driving momentum. Mobile wallet transactions are expected to grow at a 23.9% CAGR to reach US$ 5.7 trillion by 2027. 

NBFCs are emerging as key financial intermediaries, especially in retail and MSME lending. Public funds with NBFCs grew at a 14.04% CAGR from 2016 to 2020, reaching US$ 470.74 billion, supported by regulatory reforms. 

Dar Credit and Capital Limited IPO – Type of Offer

Dar Credit and Capital Limited is coming up with an IPO with a fresh issue of 42.76 lakh shares worth INR 25.66 crores. The company aims to augment its capital base to meet future business requirements and fund general corporate purposes. 

Dar Credit and Capital IPO Offer Size

The offer size of Dar Credit and Capital Limited is INR 25.66 crores, consisting of a fresh issue of 42.76 lakh shares. The company aims to augment its capital base to meet future business requirements and fund general corporate purposes. 

Dar Credit and Capital Limited IPO Allotment Structure

Dar Credit and Capital Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to 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 the Dar Credit and Capital IPO?

To apply for the Dar Credit and Capital Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Dar Credit and Capital Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Dar Credit and Capital Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After 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 do you check Dar Credit and Capital IPO Allotment Status?

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 the 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 Dar Credit and Capital Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Dar Credit and Capital Limited 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, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Dar Credit and Capital Limited IPO:

● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Dar Credit and Capital Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange Small and Medium Enterprises (NSE SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Dar Credit and Capital Ltd IPO Offer Registrar

The registrar for the Dar Credit and Capital Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFin Technologies Limited Selenium,

Tower-B, Plot No. 31 and 32 

Financial District, Nanakramguda, Serilingampally

Hyderabad 500 032 Telangana, India

Tel: +91 40 6716 2222

E-mail: [email protected]

Website: www.kfintech.com 

Dar Credit and Capital IPO – FAQs