Dar Credit IPO finding healthy interest as subscription reaches 17.77 times on second day

Dar Credit & Capital IPO

The initial public offering of Dar Credit & Capital, a non-banking finance company, has attracted significant interest from investors on the second day of bidding, witnessing 17.77 times subscriptoin on May 22.

The company aims to raise Rs 25.66 crore via its maiden public issue of 42.76 lakh shares at the upper end of price band of Rs 57-60 per share.

Investors have bid for 5.43 crore equity shares in the last two days, compared to the offer size of 30.6 lakh shares via 21,911 applications.

Dar Credit & Capital mopped up Rs 7.3 crore through anchor book on May 20, a day before the issue opening. Most IPO funds will be utilised for augmenting capital base of the company and the remainder for general corporate purposes.

As per the capital adequacy norms issued by the RBI, the company is required to have a regulatory minimum capital to Risk Weighted Assets ratio (CRAR) of 15 percent consisting of Tier I and Tier II capital. Additionally, the company is required to maintain a Tier I capital of 10 percent at all time.

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As on December 2024, its CRAR is 39.94 percent of which Tier-I capital was 100 percent of total CRAR.

The merchant banker handling the public issue is GYR Capital Advisors. The offer will close on May 23.