Capital Small Finance Bank IPO sees full subscription on Day 2; retail investors lead

Capital Small Finance Bank IPO closes on February 9

The public offer of Capital Small Finance Bank was subscribed fully on February 8, the second day of bidding, as investors purchased 82.65 lakh equity shares against an offer size of 81.47 lakh.

Retail investors led the race, picking up 1.12 times the portion set aside for them, followed by Qualified institutional buyers or QIBs who subscribed 1.06 times their allotted quota. Non-institutional investors purchased 70 percent of the portion reserved for them.

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Capital Small Finance Bank aims to raise Rs 523.07 crore through its public issue of 1.1 crore equity shares at a price band of Rs 445-468. An amount of Rs 157 crore was raised from anchor investors on February 6, a day before the IPO was floated.

The Capital Small Finance Bank public issue, closing on February 9, includes a fresh issue of shares worth Rs 450 crore and an offer-for-sale of 15.61 lakh equity shares worth Rs 73.07 crore by existing shareholders. The bank will utilise the net proceeds mainly for enhancing its Tier – I capital base to meet future capital requirements.

In Q1 FY24, Capital Small Finance Bank recorded a 15.6 percent growth in total business at Rs 12,583.68 crore. The bank reported a profit after tax of Rs 30.10 crore, compared to Rs 18.28 crore in the same period last year.

Total income increased to Rs 202.29 crore from Rs 162.91 crore. As of June 2023, total advances were Rs 5,519 crore, and deposits stood at Rs 7,064.35 crore, with a 40.04 percent share of current and savings deposits. Non-performing assets improved, with gross and net NPAs at 2.81 percent and 1.37 percent, respectively.

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