Capital Small Finance Bank files DRHP for IPO 

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Capital Small Finance Bank, which is amongst the leading SFBs in India in terms of asset quality, cost of funds, retail deposits and CASA deposits for fiscal 2021. (Source: CRISIL Research Report) has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).

The company commenced operations as India’s first small finance bank and has the most diversified portfolio with the sizeable book in multiple asset classes as compared to other SFBs with the highest proportion of secured lending of 99% as of Fiscal 2021 among the SFBs. (Source: CRISIL Research Report).

The company plans to raise funds via Initial Public Offering which comprises of fresh issue of equity shares aggregating up to Rs450cr (The Fresh Issue) and an offer for sale of up to 3,840,087 equity shares (“The Offer for Sales”).

The Offer for Sale comprises up to 337,396 equity shares by PI Ventures LLP, up to 604,614 equity shares by Amicus Capital Private  EQUITY I LLP, up to 70,178 equity shares by Amicus Capital Partners India Fund I and up to 836,728 equity shares by Oman India Joint Investment Fund II (The Investor Selling Shareholders”) and up to 1,991,171 equity shares by certain person listed in DRHP (The “Other Selling Shareholders”).

Company 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. 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. (Source: CRISIL Research Report). Company has the highest retail deposits per branch of Rs. 322.50 million as of Fiscal 2021. (Source: CRISIL Research Report) and have the lowest cost of funds among the SFBs as of Fiscal 2021. (Source: CRISIL Research Report).

Company proposes to utilise net proceed from the fresh issue towards augmentation the Bank’s Tier-I capital base to meet the Bank’s future capital requirements.

Edelweiss Financial Services Limited, Axis Capital Limited and SBI Capital Markets Limited are the Book Running Lead Managers of the issue.

The equity shares are proposed to be listed on BSE and NSE.



Categories: IPO Bankers

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