Capital Small Finance IPO Day 2: Issue subscribed 95% so far

8 Feb 2024 , 01:09 PM

The public offering of Capital Small Finance Bank saw robust demand on February 8, the second day of bidding, with a subscription rate of 95%. Investors enthusiastically snapped up 77,64,832 equity shares out of the total offer size of 81.47 lakh. Click here to subscribe the IPO.

Retail investors led the charge, securing 1.04 times of the portion reserved for them, while non-institutional investors followed suit by subscribing to 0.62 of their allocated share. However, qualified institutional buyers (QIBs) showed interest, subscribing to 1.06 times of their allotted portion.

Capital Small Finance Bank aims to raise ₹523.07 Crore through its public issue, offering 1.1 Crore equity shares at a price band of ₹445-468. The bank had already garnered ₹157 Crore from anchor investors on February 6, a day preceding the IPO launch.

Closing on February 9, the bank’s public issue comprises a fresh issuance of shares worth ₹450 Crore and an offer-for-sale of 15.61 lakh equity shares worth ₹73.07 Crore by existing shareholders. The bank intends to utilize the net proceeds primarily to bolster its Tier – I capital base to meet future capital requirements.

In the first quarter of FY24, Capital Small Finance Bank witnessed a robust 15.6% growth in total business, reaching ₹12,583.68 Crore. The bank’s profit after tax surged to ₹30.10 Crore, compared to ₹18.28 Crore in the corresponding period last year. Total income also witnessed a notable uptick, climbing to ₹202.29 Crore from ₹162.91 Crore.

As of June 2023, the bank’s total advances stood at ₹5,519 Crore, while deposits amounted to ₹7,064.35 Crore, with current and savings deposits accounting for a significant 40.04% share. Furthermore, non-performing assets showed improvement, with gross and net NPAs declining to 2.81% and 1.37%, respectively.