Capital Small Finance Bank Limited

About the company

## **About  Capital Small Finance Bank Limited** Incorporated in 1999, Capital Small Finance Bank Limited offers a range of banking products in semi-urban and rural regions. Its product offerings primarily include agriculture loans, MSME and trading loans (working capital, machinery loans etc.) and mortgages (housing loans and loans against property).  It primarily focuses on the middle income customer segment, with 41% of its branches in rural areas, 34% in semi-urban areas and 23% in urban areas as of 30 September 2023. It operates a branch-based model with a network of 173 branches and 175 ATMs covering 24 districts in five states and one union territory in India namely, Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh and Chandigarh.  It leveraged its technological capabilities, and this transition allowed it to have a wider outreach with ₹10.39 million digital transactions during FY23. It saw a CAGR rise of 17% in its net interest income and nearly 32% in its profit between FY21 and FY23. Meanwhile, its gross non-performing asset (NPA) stood at 2.73% of total advances, while net NPAs were at 1.36% of total advances as of 30 September 2023. Moreover, small finance banks’ loan portfolio is expected to grow at a CAGR of 22% to 24% between FY23 and FY25, which could benefit the bank.  And now, Capital Small Finance Bank Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to augment the bank’s Tier – I capital base, and increase the branch network and the lending business. Its shares will be listed on the NSE and the BSE. Here are key details about the Capital Small Finance Bank Limited IPO: Company Name| **Capital Small Finance Bank Limited**|  | Company Type| **Private** ---|---|---|---|--- Company Established On|**1999**| ### **Financial snapshot** Particulars| FY21| FY22| FY23| Q2FY24 ---|---|---|---|--- Revenue|₹ 511 crore|₹ 578 crore|₹ 676 crore|₹ 385 crore Net Profit|₹ 40.7 crore|₹ 62.5 crore|₹ 93.5 crore|₹ 54.3 crore ## ## **Here’s a quick look at Capital Small Finance Bank Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)** ### **Strengths and opportunities** 1. Well-diversified portfolio across products - agricultural, MSME and trading, mortgage lending and other products.  1. Retail-focused liability franchise with CASA ratio increasing from 40% in FY21 to 41% in FY23.  1. Secured portfolio with 99% of its loan book secured and 84% of the loans being secured with immovable properties as of 30 September 2023.  1. Streamlined credit assessment processes and risk management practices with a credit sanctioning committee that oversees the exposures of an amount involving ₹1 crore or above.  1. Customer-centric approach and understanding of target customers as it had 7,25,037 customers as of 30 September 2023.  1. Consistent track record of growth with constantly improving operational and profitability metrics. ### **Risks and threats** 1. Subject to inspections by the RBI. 1. Operates in a competitive industry and faces competition from IDFC First Bank, AU SFB, Equitas SFB, Ujjivan SFB, Suryoday SFB, and ESAF SFB.  1. It derives a significant portion of its revenue from lending business, making up 73% of the total revenue in the six months ended 30 September 2023. 1. Has experienced negative cash flows from operating activities in FY21 and FY22, and consecutively from investing activities between FY21 and Q2 FY24.  1. Had total indebtedness of ₹529 crore as of 31 December 2023.  1. Business is concentrated in North India, with 86% of its total branches in Punjab as of 30 September 2023.  1. Subject to the risk of volatility in interest rates. ## **Capital Small Finance Bank Limited IPO details** ### **** **Capital Small Finance Bank Limited IPO date** According to the offer document filed by the company with the SEBI, the Capital Small Finance Bank IPO’s opening date – in other words, the Capital Small Finance Bank IPO launch date – will be 7th February 2024. The Capital Small Finance Bank IPO closing date is 9th February 2024. After this, investors will be updated about the allotment status on 12th February 2024. Investors, who have been allotted shares, can expect them to be credited to their demat account on 13th February 2024. The Capital Small Finance Bank IPO listing date is 14th February 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. ### **** **Capital Small Finance Bank Limited** **IPO Price Band** The IPO is an offer for sale as well as a fresh issue. The Capital Small Finance Bank IPO price band has been set between ₹445 and ₹468 per share. Interested investors can choose a price within this band to apply for the IPO. The Capital Small Finance Bank IPO listing price will be determined on 14th February 2024. The listing price is the price at which a company’s shares debut on the stock exchanges. **** **Capital Small Finance Bank Limited IPO Lot size** The Capital Small Finance Bank IPO details have been declared. The Capital Small Finance Bank IPO lot size is set at 32 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Capital Small Finance Bank IPO issue size is approx ₹523 crore. ## **How to pre-apply for the Capital Small Finance Bank Limited** **IPO?** You can pre-apply for the Capital Small Finance Bank Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover tab, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, look for the ‘Capital Small Finance Bank Limited IPO’ tab and click on it 1. Now fill in all the required information, like ‘bid price’ and ‘lot size’ 1. Confirm and click on ‘Pre-Apply’ 1. Accept the mandate on your UPI app ## **How to apply for the Capital Small Finance Bank Limited** **IPO?** If you are interested in this investment opportunity but unsure how to apply for the Capital Small Finance Bank Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Capital Small Finance Bank Limited IPO on Upstox: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover tab, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, look for the ‘Capital Small Finance Bank Limited IPO’ tab and click on it 1. Now fill in all the required information, like ‘bid price’ and ‘lot size’ 1. Confirm and click on ‘Apply’ 1. Accept the mandate on your UPI app ## **How to check the Capital Small Finance Bank Limited** **IPO** **allotment status?** When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the Capital Small Finance Bank Limited IPO allotment status: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover page, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, you will find the ‘View all’ option 1. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab 1. In the ‘IPO’ tab, click on ‘My applications’  1. In ‘My applications’, under the History section, your Capital Small Finance Bank Limited IPO allotment status will be mentioned Check Allotment Status ## **Open a demat account with Upstox to apply for the Capital Small Finance Bank Limited** **IPO** To apply for the Capital Small Finance Bank Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: 1. Click [ **here**](https://upstox.com/open-demat-account/\OpenOpen?landing_page=learning-center/demat-account/demat-account-opening-procedure) to visit the demat account opening page on the Upstox website.  1. Enter your phone number and other essential details to begin opening a demat account. 1. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  1. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? [Open Demat Account](https://upstox.com/open-demat-account/\Open\Open) ## **Upstox – trading app to apply for the Capital Small Finance Bank Limited IPO** Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the Capital Small Finance Bank Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   07 Feb 2024

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   09 Feb 2024

   Last day to place your bid

3. Basis of Allotment

   Completed
   09 Feb 2024

   Share allotment finalised

4. Refund Initiation

   Completed
   13 Feb 2024

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   12 Feb 2024

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   14 Feb 2024

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.