Capital Small Finance Bank expected to make a quiet debut on February 14

Capital Small Finance Bank IPO: The public offer was subscribed 4.17 times between February 7 and February 9

The Capital Small Finance Bank stock is expected to make a muted debut on February 14, as the public offer received a subdued response, according have said.

Ahead of the listing, the stock’s grey market premium (GMP) was wiped out. Grey market is an unofficial platform where stocks begin to trade well before the allotment in the IPO. It is normally tracked to get an idea of the listing price.

Capital Small Finance Bank is a north region-centric financial services provider, which is mulling India-wide presence with the expansion of its branch network, said Amit Goel, Co-Founder and Chief Global Strategist at Pace 360.

“Based on FY24 annualised earnings, it appears aggressively priced issue and there is not much upside in this IPO,” he said.

Also Read: Capital Small Finance Bank IPO: 10 things to know about the Rs 523-crore issue

The Rs 523.07-crore issue was subscribed 4.17 times between February 7 and February 9.

The IPO was a mix a fresh issue of 96.15 lakh shares worth Rs 450 crore and an offer-for-sale of 15.61 lakh shares worth Rs 73.07 crore. The price band for the issue was fixed at Rs 445-468 a share.

“Capital SFB IPO received a muted 4x subscription and we expect a muted opening at the issue price of Rs 468 per share when it lists on the bourses on February 14,” said Shreyansh V Shah, Research Analyst, StoxBox.

Funds raised through the fresh issue will be used for augmenting the bank's Tier–I capital base to meet capital requirements.

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In 2016, Capital SFB was the first non-NBFC microfinance entity to receive the small finance bank licence.

The company has a robust presence in semi-urban and rural areas, employing a branch-based operating model.

Starting with 47 branches, it has now expanded to more than 172 branches across Delhi, Haryana, Rajasthan, Himachal Pradesh and the Union Territory of Chandigarh.

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