Dar Credit And Capital IPO Booked Over 19 Times On Day 2; GMP Up 26%

Dar Credit and Capital launched its initial public offering (IPO) on May 21 to raise over Rs 25 crore from the primary market. The SME IPO received a robust response from the investors on Day 1 - the public issue was booked close to 6 times on Wednesday. The demand for the Dar Credit and Capital IPO was led by Retail investors who bid for 1,67,38,000 shares against the 14,22,000 on offer. Non-Institutional Buyers bid for 23,78,000 shares against the 6,10,000 on offer (3.9 times subscription) and this was followed by Qualified Institutional investors who bid for 13,36,000 shares against the 8,12,000 on offer (1.65 times subscription).

Dar Credit and Capital is a Non-Banking Finance Company (NBFC) that offers financial products such as personal loans and loans for Micro, Small and Medium Enterprises (MSMEs).

As bidding concludes on Day 2, here's all you need to know about Dar Credit And Capital IPO including its GMP, day 2 subscription status, and more.

Dar Credit and Capital IPO is a book-building IPO worth Rs 25.66 crore. The NSE SME issue entirely comprises a fresh issue of 42.76 lakh shares.

The price band for the NSE SME issue has been set between Rs 57 to Rs 60 per share.

Retail investors can invest in the IPO with a minimum lot size of 2,000 shares, requiring an investment of Rs 1,20,000. High Net Worth Individuals (HNIs) can invest with a minimum lot size of 4,000 shares, which amounts to an investment of Rs 2,40,000.

Of the total 42,76,000 shares on offer, 8,12,000 (18.99%) are allocated to Qualified Institutional investors, 6,10,000 (14.27%) are allocated to Non-Institutional buyers, 14,22,000 (33.26%) are allocated to Retail investors, and 12,16,000 (28.44%) are allocated to Anchor investors.

The Dar Credit and Capital IPO will be open for subscription till May 23. The Dar Credit and Capital IPO share allotment status is expected to be finalised on May 26.

The company is scheduled to process refunds and transfer the shares to the Demat accounts on May 27.

Shares of Dar Credit and Capital are proposed to be listed on the NSE SME platform on May 28. 

GYR Capital Advisors Pvt. is the book-running lead manager of the Dar Credit and Capital IPO. Kfin Technologies Ltd. is the registrar and SMC Global Securities Ltd. is the market maker for the issue. 

The IPO was subscribed 19.22 times on Thursday.

• Qualified Institutions: 2.65 times

• Non-Institutional Buyers: 16.81 times

• Retail Investors: 29.72 times

The subscription status will be updated at regular intervals.

According to Investorgain, the latest grey market premium (GMP) of the IPO was Rs 16 at 5:58 p.m. on May 22. This implies shares of the company will likely list at Rs 76 apiece, indicating a 26.67% premium to the upper end of the price band.

Note: GMP does not represent official data and is based on speculation.

Dar Credit and Capital is an NBFC incorporated under the Companies Act,1956, in West Bengal. Its financial products include personal loans, unsecured MSME loans, and secured MSME loans. It has a presence across six states in India. 

The proceeds from the IPO will be used for general corporate purposes and to increase the capital base of the company. 

The company reported a 35.5% year-on-year rise in profit after tax (PAT) to Rs 3.97 crore in FY24 from Rs 2.93 crore in FY23. Revenue from operations rose 29.29% YoY to Rs 32.05 crore in FY24 from Rs 24.79 crore in FY23. For the nine months ended Dec. 31, 2024, its revenue from operations stood at Rs 30.08 crore and PAT at Rs 4.92 crore. 

 Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.