Private Equity-Backed Capital Small Finance Bank Files Draft Papers for IPO

29 Sep 2023 , 02:04 PM

Capital Small Finance Bank Ltd, supported by private equity and venture capital, has submitted draft papers to the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The IPO comprises a fresh issue of Rs 450 crore and an offer-for-sale of up to 24.12 lakh shares by existing shareholders and promoters.

The offer-for-sale includes up to 8.37 lakh shares from Oman India Joint Investment Fund II, up to 3.37 lakh shares from PI Ventures LLP, up to 6.05 lakh shares from Amicus Capital Private Equity I LLP, up to 70,178 shares from Amicus Capital Partners India Fund-I, and up to 5.64 lakh shares from other shareholders.

Nuvama Wealth Management, DAM Capital Advisors, and Equirus Capital will serve as the lead managers for the IPO.

The funds raised from the IPO will strengthen the bank’s Tier-I capital to meet future capital requirements driven by asset growth, especially in loans and investments, and to ensure compliance with RBI’s capital adequacy regulations, according to the bank.

Established in 2000 by Samra, the Jalandhar-headquartered bank initially operated under the name Capital Local Area Bank before becoming Capital SFB and launching banking operations on April 24, 2016, becoming India’s first small finance bank (SFB).

Starting with 47 branches, it has expanded to over 172 branches across Delhi, Haryana, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh. The bank offers various loan products, primarily serving small borrowers, including those for small and medium enterprises, agriculture, housing, and other needs.