The shares of Capital Small Finance Bank debuted with a discount of 7% on the exchanges on Wednesday. The stock listed at Rs 435 on BSE as against an issue price of Rs 468. Meanwhile, the stock listed at Rs 430.20, down 8% on NSE.
Ahead of the listing, the company’s shares traded flat in the unlisted market.
Through the public offer, which was subscribed 4 times, the company raised about Rs 523 crore.
The IPO comprised a fresh equity issue of Rs 450 crore and an offer for sale (OFS) of 15.61 lakh shares. Under the OFS, Oman India Investment Fund, Amicus among others offloaded shares.
Capital Small Finance Bank focuses primarily on the middle-income customer segments i.e., customers with an average annual income of Rs 4-5 lakh in semi-urban and rural areas. It has 42% of the branches in rural areas, 34% branches in semi-urban areas and 24% in urban areas, as of September 2023.
It has a diversified portfolio with sizable books in multiple asset classes with proportion of secured lending of 99.85% as on September 2023.
The lender has average gross NPA ratio of 2.52% and average net NPA ratios of 1.30% with negligible write offs as a percentage of loan book for previous three fiscals and first half of current year. It also had consistent asset quality in the range of 2-3% from FY21 to H1 of FY24.
Capital SFB’s retail deposits, and CASA deposits stood at 93.59%, and 37.76%, as on September 2023, respectively.
Since FY21, the small banking lender’s loans, with a ticket size of up to Rs 25 lakh, increased from 62.88% of its total loan book to 67.80% in FY23.
In the period ended September 2023, the company’s revenue from operations increased 21% to Rs 415 crore and the net profit rose 31% to Rs 54.3 crore.
Nuvama, Equirus Capital and DAM Capital acted as the book running lead managers to the issue and Link Intime India was the registrar.
