Capital Small Finance Bank IPO: Shares Debut At 8 Per Cent Discount Over Issue Price

The maiden offering included a fresh issue of up to Rs 450 crore and an offer-for-sale of up to 15,61,329 equity shares. The issue was priced at Rs 455 to Rs 468 a piece

As of session end on Wednesday, the stock settled at Rs 434.30 per share the BSE and Rs 437 a piece on the NSE

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Capital Small Finance Bank made a weak debut in the stock market on Wednesday. The firm’s shares started trading at Rs 430.25 on the NSE, marking a discount of 8 per cent over the issue price of Rs 468. 

On the other hand, the company’s stock listed on the BSE at Rs 435, logging a discount of 7 per cent from the issue price, reported PTI. The maiden offering included a fresh issue of up to Rs 450 crore and an offer-for-sale of up to 15,61,329 equity shares. The issue was priced at Rs 455 to Rs 468 a piece. 

The firm’s initial public offering (IPO) was subscribed 4 times on the last day of the bidding, i.e., on February 9, 2024. Retail investors subscribed to the issue 2.6 times, while Non-Institutional Investors (NII) applied for it 4.23 times, and Qualified Institutional Buyers booked the issue 6.86 times. 

The banking firm targets middle-income customers with an annual income in the range of Rs 4 lakh to Rs 50 lakh and provides a mix of services, products, and digital facilities. As of September end 2023, the bank operated 173 branches and 175 ATMs, with a little over 75 per cent of the branches located in rural and semi-urban regions, reported Business Standard. 

The lender has its headquarters in Jalandhar, Punjab and has enhanced its footprint in the northern parts of the country in states like Rajasthan, Haryana, Punjab, Delhi, Himachal Pradesh, and Chandigarh. About 99.85 per cent of the bank's loan book was secured with 84.26 per cent of the loans supported by immovable assets, as of September 2023 end.

The bank intends to use the funds raised from the issue to augment its tier-I capital base and cater to future requirements. It started operations in 2016 and promoter family led by Sarvjit Singh Sharma owns a 24 per cent stake in the company. As of session end on Wednesday, the stock settled at Rs 434.30 per share the BSE and Rs 437 a piece on the NSE.