February 14, 2024

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Capital SFB IPO Analysis @ Chanakyanipothi.com , India`s Oldest & most Trusted Investment Blog.Operational since 8th December 1999, We are the Only Investment Platform in India, which has successfully completed 22 Years

Post Listing Review: The scrip on 14th February, is listed at Rs. 430.25, compared to the Issue-price of Rs. 468, at a discount of 8.07%. The listing has been disappointment to the investors as well as grey market players.

What is the last GMP of Capital SFB IPO?
Premium: Rs. 0 Gone
Small Subject to Rs.0
Big Subject to Rs. 0 Gone

What is the subscription status of Capital SFB IPO?
On 9 February 2024 5.00 pm (Day 3) (Closed)
Review: Not so impressive subscription
QIB: 2310528 Shares 6.64 T
NII(10L+): 1167369 Shares 3.48 T
NII (<10L) 583685 Shares 5.20 T
NII (Total) 1751054 Shares 4.05 T
RII: 4085791 Shares 2.49 T
Total: 8147373 Shares 4.00 T

Capital Small Finance Company Details
Capital Small Finance commenced operations as India’s first small finance bank in 2016, and are among the leading SFBs in India in terms of asset quality, cost of funds, retail deposits and CASA deposits for Fiscal 2021. . It has the most diversified portfolio with sizeable book in multiple asset classes as compared to other SFBs with a highest proportion of secured lending of 99% as of Fiscal 2021 among the SFBs. . It has the best asset quality among the SFBs represented by lowest GNPA and NNPA of 2.08% and 1.13% respectively as of Fiscal 2021. Further, it has the highest CASA ratio of 40% in Fiscal 2021 as compared with other SFBs and are amongst the top 10 banks vis a vis the
private sector banks. . It also has the highest retail deposits per branch of Rs 322.50 million
as of Fiscal 2021 and has the lowest cost of funds among the SFBs as of Fiscal 2021.

Capital Small Finance has an experience of over two decades in the banking industry having operated as the largest local area bank prior to its conversion into a small finance bank. It is one out of the two non-NBFC microfinance entity to receive the SFB license in 2015 . Its core strategy is to build a robust retail focused banking franchise by enabling access to affordable credit in the states it operates with special em phasis on rural and semi-urban areas. It focuses primarily on the middle-income customer segments i.e., customers with an average annual income of Rs 0.4
million to Rs 5 million. It targets to be the primary banker to its customers and endeavour to achieve this o bjective through a mix of (i) suite of our product offerings; (ii) customer service orientation; (iii) deeply entrenched physical branch network ; and (iv) evolving digital channels of service delivery.
For more information, click www.capitalbank.co.in

The Promoters of Capital Small Finance
Sarvjit Singh Samra ,Amarjit Singh Samra , Navneet Kaur Samra , Surinder Kaur Samra & Dinesh Gupta

Capital Small Finance IPO Main Objects
The Offer comprises the Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
The Net Proceeds are proposed to be utilised towards augmentation of the Bank’s Tier-I capital base to meet the Bank’s future capital requirements

Capital Small Finance IPO Details
IPO opens on 7 February 2024
IPO closes on 9 February 2024
Issue Type: Book Built Issue IPO
Issue : up to 11176,713 Shares /Rs 523.07 Crore
* Fresh Issue of 9615384 Sh/ Rs.450 Cr
* Offer for Sale Up to 1561329 Sh/ Rs. 73.07Cr

Face Value per share : Rs. 10

Capital Small Finance IPO Price Band Per Equity Share: Rs. 445-468
Capital Small Finance IPO Retail Lot Size 32 Shares
Capital Small Finance Listing will at BSE,NSE

Shares offered to
QIB (50%) (?) Shares = Rs (?) Cr
NII (15%) Shares = Rs (?) Crs
RII (35%) Shares = Rs (?) Crs
Lot size: 32 Shares = (?) Forms
Min Retail Application: 32 Sh , Rs. 14976
Max Retail Application: 416 Sh, Rs 194688
Min small HNI Application: 448 Sh, Rs. 209664
Max small HNI Application: 2112 Sh., Rs.988416
Big HNI Application: 2144 Sh, Rs.1003392

Capital Small Finance IPO TimeTable
Capital Small Finance IPO Allotment on 12 February 2024
Unblocking of ASBA 13 February 2024
Credit to Demat Accounts 13 February 2024
Listing on 14 February 2024

Capital Small Finance IPO Financial & Analytical Ratios
Total Income 2020-21, Rs 557 Cr.
Total Income 2021-22 Rs 632 Cr.
Total Income 2022-20 Rs 725 Cr.
Net Profit 2020-21, Rs 41 Cr.
Net Profit 2021-22 Rs 63 Cr.
Net Profit 2022-20 Rs 94 Cr.
Earnings per Share 2020-21, Rs 12.04
Earnings per Share 2021-22, Rs 18.41
Earnings per Share 2022-23, Rs 27.35
Book Value of the Share as on 31.3.2023 Rs 178.27

Ratio Analysis
Shares are offered at PE Multiple of 17.11
Upper offer price/Book Value Ratio: 3.69
Capital Small Finance IPO Peer Comparison:
IDFC First Bank @ PE Multiple of 21.19
AU SFB @ PE Multiple of 29.12
Equitas SFB @ PE Multiple of 22.03
ESAF SFB @ PE Multiple of 10.29
Suryodaya SFB @ PE Multiple of 22.77
Ujjivan SFB @ PE Multiple of 9.51

Capital Small Finance IPO Lead Managers
Edelweiss finance, Axis Capital, SBI Capital Markets
Registrar to Capital Small Finance IPO
Link Intime India Pvt ltd.

Registered Office of Capital Small Finance
MIDAS Corporate Park, 3rd Floor, 37, G.T. Road, Jalandhar 144 001, Punjab
Company Secretary & Compliance Officer : Amit Sharma

Capital SFB IPO Guidance* by Paresh Gordhandas, CA and Research Analyst:

Capital Small Finance Bank is headquartered in Jalandhar, Punjab and has strategically expanded its SFB operations in northern states of India such as Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh and UT Chandigarh.
As of June 30, 2023, Capital Small Finance Bank had a presence in five states and one union territory, with a total of 172 branches and 174 ATMs. The bank’s branches were predominantly located in rural and semi-urban areas, covering 24 districts, and serving approximately 75.90% of the total customers, both in terms of credit and deposits. This suggests that the bank has a well-defined niche catering to the middle-income group, with a special emphasis on rural and semi-urban areas.
As of March 31 and June 30, 2023, respectively, 99.82% and 99.84% of the bank’s loan book was secured, with 85.16% and 84.66% of loans secured by immovable properties.
IPO Size: The IPO size of Rs. 523.07 is not very large. Oversubscription is not an issue.
Financials: The shares are offered as PE Multiple of 17.11 and there is enough room for listing gains. Apply

* Disclosure: This website has received banner advertisement related to this IPO.
#This is only coverage of News related to Grey Market . We donot deal in Grey market premium, nor we recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.

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