Capital Small Finance garnered ₹523.07 Crore from anchor book ahead IPO

6 Feb 2024 , 09:49 PM

Jalandhar-based Capital Small Finance Bank successfully garnered ₹156.92 Crore through its anchor book, which was launched for a single day on February 6, just before the opening of its initial public offering (IPO).

The IPO, valued at ₹523 Crore, will open for subscription on February 7, with bidding concluding on February 9.

In its filing to the exchanges, the small finance bank confirmed the allocation of 33,53,013 equity shares to anchor investors at a price of ₹468 per share.

A diverse range of institutional investors participated in the anchor book, including Nippon Life India, Ashoka India Equity Investment Trust, Whiteoak Capital, Edelweiss Tokio Life Insurance, 360 ONE Mutual Fund, Ananta Capital Ventures Fund, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, Kotak Mahindra Life Insurance Company, SBI General Insurance Company, and LC Pharos Multi Strategy Fund.

Capital Small Finance Bank disclosed that out of the total allocation to anchor investors, 16,02,592 equity shares, constituting 47.80% of the total anchor book, were allocated to three mutual funds through a total of eight schemes.

Backed by Oman India, Capital Small Finance Bank aims to raise up to ₹523.07 Crore through its debut public issue, with a price band set at ₹445-468 per share.

The IPO comprises a fresh issuance of shares worth ₹450 Crore, along with an offer-for-sale (OFS) of 15,61,329 equity shares worth ₹73.07 Crore by existing shareholders.

Investors Oman India Joint Investment Fund II and Amicus Capital are among the selling shareholders in the OFS.

Presently, promoters hold a 23.96% stake in the company, while the remaining 76.04% shares are owned by public shareholders, including 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.

Operating its banking products business in Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh, Capital Small Finance Bank plans to utilize the net proceeds from the fresh issue primarily to bolster its Tier – I capital base in order to meet future capital requirements.

The bank extends loans to customers across three segments: agriculture, MSMEs, and trading (including working capital and machinery loans), as well as mortgages (including housing loans and loans against property).