Capital Small Finance Bank IPO Oversubscribed with 1.62 Times Subscription

9 Feb 2024 , 11:59 AM

The IPO of Capital Small Finance Bank saw a subscription of 97% on the second day of bidding, with retail and QIB investor portions fully subscribed, while the NII portion received 64% bids. Click here to subscribe the IPO.

On the third day, at the time of writing, the Non-institutional investors’ portion was oversubscribed by 1.78 times, while the qualified institutional buyers’ (QIBs) portion witnessed a subscription of 1.07 times. The retail portion of the IPO has been oversubscribed by 1.76 times. The IPO has a price band of ₹445-468 per share. 

Capital SFB’s ₹523 Crore IPO includes a fresh equity issue of ₹450 Crore and an offer for sale (OFS) of 15.61 lakh shares, with shares being offloaded by Oman India Investment Fund, Amicus, and others.

Established in 2016 as India’s first small finance bank, Capital Small Finance Bank offers a range of banking products, with 42% of branches in rural areas, 34% in semi-urban areas, and 24% in urban areas as of September 2023.

The bank boasts a diversified portfolio with a significant proportion of secured lending, accounting for 99.85% of its portfolio as of September 2023.

In the period ending September 2023, the company’s revenue from operations increased by 21% to ₹415 Crore, while net profit rose by 31% to ₹54.3 Crore.

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