Capital Small Finance Bank Limited is a a small finance bank. In 2015, Capital SFB became the first non-NBFC microfinance entity to receive the SFB license. The company has a strong presence in semi-urban and rural areas with a branch-based operating model.
Capital Small Finance Bank targets middle-income customer segments with an annual income of ₹0.4-5 million. They aim to be the primary banker for these customers through a mix of product offerings, customer service, physical branches, and digital channels.
Capital Small Finance Bank is headquartered in Jalandhar, Punjab and has strategically expanded its SFB operations in northern states of India such as Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh and UT Chandigarh.
As of June 30, 2023, Capital Small Finance Bank had a presence in five states and one union territory, with a total of 172 branches and 174 ATMs. The bank’s branches were predominantly located in rural and semi-urban areas, covering 24 districts, and serving approximately 75.90% of the total customers, both in terms of credit and deposits. This suggests that the bank has a well-defined niche catering to the middle-income group, with a special emphasis on rural and semi-urban areas.
As of March 31 and June 30, 2023, respectively, 99.82% and 99.84% of the bank’s loan book was secured, with 85.16% and 84.66% of loans secured by immovable properties.
The average ticket size of Capital Small Finance Bank’s agriculture, MSME and trading, and mortgage lending products as of March 31, 2023, were ₹ 1.23 million, ₹ 1.82 million, and ₹ 1.16 million respectively.
As of June 30th, 2023, Capital Small Finance Bank has a total of 1827 employees working for the organization.
Capital Small Finance Bank IPO – Details
| IPO Opening Date | 07 February 2024 |
| IPO Closing Date | 09 February 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 1,11,76,714 Shares Worth ₹523.07 Crore Fresh Issue: 96,15,385 Shares Worth ₹450 Crore Offer For Sale: 15,61,329 Shares Worth ₹73.07 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹445 – ₹468 |
| Market Lot | 32 Shares |
| Min Order | 32 Shares ( 1 Lot ) |
| Listing At | BSE, NSE |
| Register | Link Intime India Private Ltd |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Capital Small Finance Bank IPO – Date Schedule
| IPO Open Date | 07 February 2024 |
| IPO Close Date | 09 February 2024 |
| Basis of Allotment Date | 12 February 2024 |
| Initiation of Refund | 13 February 2024 |
| Credit of Shares to Demat Account | 13 February 2024 |
| IPO Listing Date | 14 February 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 09 February 2024 |
Capital Small Finance Bank IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 32 | ₹14,976 |
| Retail (Max) | 13 | 416 | ₹1,94,688 |
| S-HNI (Min) | 14 | 448 | ₹2,09,664 |
| S-HNI (Max) | 66 | 2,112 | ₹9,88,416 |
| B-HNI (Min) | 67 | 2,144 | ₹10,03,392 |
Competitive Strengths
- Retail Focused Liability Franchise with High Share of CASA;
- Secured and diversified advances portfolio;
- Streamlined credit assessment processes and risk management practices;
- Customer centric approach and understanding of target customers;
- Consistent track record of growth with constantly improving operational and profitability metrics;
- Professional and experienced leadership team; and
- From Fiscal 2021 to 2023, the company’s operating profit and profit after tax grew at a CAGR of 44.23% and 51.49%, respectively.
Company Promoters
- Sarvjit Singh Samra
- Amarjit Singh Samra
- Navneet Kaur Samra
- Surinder Kaur Samra
- Dinesh Gupta
Company Financials (Restated Consolidated)
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2021 | 557.27 | 516.48 | 40.78 | 616.72 |
| 31 March 2022 | 632.40 | 569.83 | 62.57 | 498.43 |
| 31 March 2023 | 725.48 | 631.88 | 93.60 | 721.38 |
| 30 September 2023 | 415.21 | 360.82 | 54.39 | 572.76 |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 16.45% |
| Debt/Equity | 0.95 |
| RoNW | 15.33% |
Object Of The Issue
- The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting our Bank’s Tier-I capital base to meet the Bank’s future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer. The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.
Capital Small Finance Bank IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | IDFC First Bank | 21.76 |
| 2 | 10 | AU SFB | 33.40 |
| 3 | 10 | Equitas SFB | 24.13 |
| 4 | 10 | Ujjivan SFB | 9.97 |
| 5 | 10 | Suryoday SFB | 24.08 |
| 6 | 10 | ESAF SFB | 10.33 |
Capital Small Finance Bank IPO Promoter Holding
| Pre Issue Share Holding | 23.96% |
| Post Issue Share Holding | 18.85% |
Capital Small Finance Bank IPO Prospectus
Company Contact Information
| Capital Small Finance Bank Limited MIDAS Corporate Park, 3rdFloor, 37, G.T. Road, Jalandhar 144 001, Phone: +91 181 5051111 Email: cs@capitalbank.co.in Website: https://www.capitalbank.co.in/ |
Capital Small Finance Bank IPO Registrar
| Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: capitalsfb.ipo@linkintime.co.in Website: https://linkintime.co.in/initial_offer/public-issues.html |
Capital Small Finance Bank IPO Lead Manager(s)
| 1. Nuvama Wealth Management Limited 2. Dam Capital Advisors Ltd 3. Equirus Capital Private Limited |
Capital Small Finance Bank IPO FAQs
| What is Capital Small Finance Bank IPO? Capital Small Finance Bank IPO is a main-board IPO. The issue is priced at ₹445 to ₹468 per equity share. The IPO is to be listed on BSE & NSE. |
| When Capital Small Finance Bank IPO will open? The IPO is to open on 07 February 2024 for QIB, NII, and Retail Investors. |
| What is Capital Small Finance Bank IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Capital Small Finance Bank IPO? You can apply Capital Small Finance Bank IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Capital Small Finance Bank IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Capital Small Finance Bank”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Capital Small Finance Bank IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Capital Small Finance Bank“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Capital Small Finance Bank IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Capital Small Finance Bank”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Capital Small Finance Bank IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Capital Small Finance Bank”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Capital Small Finance Bank IPO Size? Capital Small Finance Bank IPO size is ₹523.07 Crore. |
| What is Capital Small Finance Bank IPO Price Band? Capital Small Finance Bank IPO Price Band is ₹445 to ₹468. |
| What is Capital Small Finance Bank IPO Minimum and Maximum Lot Size? The minimum bid is 32 Shares with ₹14,976 amount while the maximum bid is 416 Shares with ₹1,94,688. |
| What is the Capital Small Finance Bank IPO Allotment Date? Capital Small Finance Bank IPO allotment date is 12 February 2024. |
| What is the Capital Small Finance Bank IPO Listing Date? Capital Small Finance Bank IPO listing date is 14 February 2024. The IPO is to list on BSE and NSE. |
