Capital Small Finance Bank Ltd IPO
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Capital Small Finance Bank Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| TBA | TBA | TBA | ₹ 79.33 L | BSE | TBA |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 07 Feb, 24 | 09 Feb, 24 | 32 | TBA | Book Building | 14 Feb, 24 |
Capital Small Finance Bank Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Banks - Private Sector |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 0x | 0 | 15332864 |
| NII | 0x | 0 | 7092032 |
| Retail | 0x | 0 | 10181440 |
| Employee | 0x | 0 | 0 |
| Total | 0x | 0 | 32606336 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Capital Small Finance Bank Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 165.12 | 144.82 | 100.60 |
| EBITDA | 182.02 | 165.49 | 116.72 |
| PAT | 111.53 | 93.60 | 62.57 |
| Total Assets | 1,434.00 | 992.70 | 1,080.18 |
| Share Capital | 45.04 | 34.25 | 34.04 |
| Total Borrowings | 585.09 | 833.22 | 559.56 |
| Operating Activities (Net Cash) | 128.43 | 114.27 | 78.69 |
| Investing Activities (Net Cash) | 1,705.71 | 1,488.58 | 1,357.06 |
| Financing Activities (Net Cash) | 585.09 | 833.22 | 559.56 |
| Net Cashflow | 1,321.16 | 880.86 | 1,019.06 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Capital Small Finance Bank Ltd
Capital Small Finance Bank Limited was incorporated as `Capital Local Area Bank Limited' on May 31, 1999 at Phagwara district Kapurthala, Punjab, as a public limited company under the Companies Act, 1956, and was granted a certificate of incorporation by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh. The name of the Bank was subsequently changed to `Capital Small Finance Bank Limited' pursuant to a shareholders' resolution dated April 2, 2016, to reflect the change in status of the Bank from a local area bank to a small finance bank pursuant to the Reserve Bank of India approval dated March 4, 2016, and a fresh certificate of incorporation was granted by the Registrar of Companies, Punjab and Chandigarh at Chandigarh (RoC) on April 15, 2016. The Bank commenced its business pursuant to a certificate of commencement of business issued by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh dated August 12, 1999.
Small finance banks' AUM clocked 26% CAGR during fisca ls 2016-2021. With their localised past experience, SFBs, especially the ones which were existing as local area banks have the ability to manage local stakeholders and maintain operational efficiency more effectively. CRISIL Research expects the sector's loan portfolio to see a strong ~22% CAGR in the near term as most of the SFBs have completed the transition phase and likely to get benefit from the operating leverage. The share of SFBs in deposits as well as credit has seen a steady rise over the years and is expected to reach 1% and 1.5% respectively by fiscal 2024 from the current 0.6% and 1.0% in deposits and credits in fiscal 2021.
Capital Small Finance Bank Limited commenced operations as India's first small finance bank in 2016, and are among the leading SFBs in India in terms of asset quality, cost of funds, retail deposits and CASA deposits for Fiscal 2021.The Company has the most diversified portfolio with sizeable book in multiple asset classes as compared to other SFBs with a highest proportion of secured lending of 99% as of Fiscal 2021 among the SFBs. The Company has the best asset quality among the SFBs represented by lowest GNPA and NNPA of 2.08% and 1.13% respectively as of Fiscal 2021. The Company has an experience of over two decades in the banking industry having operated as the largest local area bank prior to its conversion into a small finance bank.
Peer Comparison:
- City Union Bank Ltd
- AU Small Finance Bank Ltd
- Equitas Small Finance Bank Ltd
- IDFC First Bank Ltd
- AU Small Finance Bank Ltd
- Equitas Small Finance Bank Ltd
- Ramtech Software Solutions Pvt Ltd
- Suryoday Small Finance Bank Ltd
- ESAF Small Finance Bank Ltd
Capital Small Finance Bank Ltd IPO Key Points
Strengths
- Strong retail liability franchise with a high share of CASA;
- Secured and diversified advances portfolio;
- Robust credit assessment processes and risk management practices;
- Customer centric approach and deep understanding of target customers;
- Consistent track record of growth with constantly improving operational and profitability metrics ;
Risk
- Its business is concentrated in North India, particularly in the state of Punjab, and any adverse change in the economy of North India could have an adverse effect on its financial condition, results of operations and cash flows.
- The company is subject to strict regulatory requirements and prudential norms. If the company is unable to comply with such laws, regulations and norms it may have an adverse effect on its business, financial condition, results of operations and cash flows.
- COVID-19 has had and could continue to have an adverse effect on its business, results of operations and future financial performance.
Strategy
- Continue to grow its loan book organically with focus on secured lending
- Focus on strengthening its operational and profitability metrics
- Strengthen its liability franchise
- Leverage technology and data analytics for scalability and profitable growth
- Continue to grow its loan book organically with focus on secured lending.
- Strong retail liability franchise with a high share of CASA;
- Secured and diversified advances portfolio;
- Robust credit assessment processes and risk management practices;
- Customer centric approach and deep understanding of target customers;
- Consistent track record of growth with constantly improving operational and profitability metrics ;
How To Apply for Capital Small Finance Bank Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.
