Capital Small Finance Bank launched its initial public offering on Wednesday to raise up to Rs 523 crore. The IPO was subscribed 0.50 times, or 50%, on its first day.
The price band of the IPO is fixed at Rs 445–468 per share. The three-day IPO closes on Friday.
The issue consists of Rs 450 crore of fresh issues and the remaining Rs 73 crore of offers for sale, through which promoters and external investors will dilute 5% of their pre-issue holdings. Those selling shares in the OFS include Oman India Joint Investment Fund II, American Capital and Amicus Capital Private Equity.
The company has raised Rs 157 crore from anchor investors. The Jalandhar-based bank has allocated 33.53 lakh equity shares to 19 funds at Rs 468 apiece, which is also the upper end of the price band. Whiteoak Capital Fund, LC Pharos Multi Strategy Fund, Nippon Life India Trustee Ltd, 360 One Fund, Edelweiss Tokio Life Insurance Company, HDFC Life Insurance Co. and ICICI Prudential Life Insurance Company participated in the anchor round.
Issue Details
Issue opens: Feb. 7.
Issue closes: Feb. 9.
Total issue size: Rs 523 crore.
Face value: Rs 10 apiece.
Fixed price band: Rs 445-468 per share.
Minimum lot size: 32 shares.
Listing: NSE and BSE.
Use Of Proceeds
Capital Small Finance Bank, which began operations in 2016 after converting itself from a local area bank, is 24% owned by the promoter family led by Sarvjit Singh Sarma and his family. The bank offers fully secured loans to MSMEs, mortgages and farmers in Punjab, Delhi, Haryana, Rajasthan, Himachal Pradesh and Union Territory of Chandigarh.
Subscription Status: Day 2
The IPO was subscribed 1.19 times as of 5 p.m. on Thursday.
Institutional investors: 1.06 times.
Non-institutional investors: 1.03 times.
Retail investors: 1.34 times.
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