Capital Small Finance Bank's weak listing; debuts at 8% discount to IPO issue price

Capital Small Finance Bank IPO: The price band for the issue was fixed at Rs 445-468 per share.

Capital Small Finance Bank made a weak debut on bourses, listing at an 8.1 percent discount to the IPO price on February 14. The stock opened at Rs 430 on the NSE and Rs 435 on the BSE, against the issue price of Rs 468.

Ahead of the listing, the stock’s grey market premium (GMP) was wiped out after the shares were trading at an 8 percent premium when the offer opened on February 7. The 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.

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The IPO, valued at Rs 523.07 crore, garnered a subscription of 4.17 times between February 7 and February 9.

The offering comprised a fresh issue of 96.15 lakh shares, amounting to Rs 450 crore, along with an offer-for-sale of 15.61 lakh shares valued at Rs 73.07 crore. The price range for the IPO was set at Rs 445-468 per share. Investors Oman India Joint Investment Fund II, and Amicus Capital are among the selling shareholders in the OFS.

The small finance bank, conducting its banking operations in Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh, plans to use the net proceeds from the fresh issue primarily to strengthen its Tier–I capital base, catering to future capital needs.

The bank specialises in providing loans in three key segments: agriculture, MSME (Micro, Small, and Medium Enterprises), trading (including working capital and machinery loans), as well as mortgages (covering housing loans and loans against property).

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