Capital Small Finance Bank gets green signal from SEBI to launch its proposed IPO; key highlights here

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₹450 crore and an offer for sale of up to 2,412,685 equity shares. For the IPO, Nuvama Wealth Management, DAM Capital Advisors, and Equirus Capital Private are the book-running lead managers.

Also Read: LIC stock touches ₹900 mark for first time since listing; mcap jumps ₹1.82 lakh crore in less than 3 months The bank commenced operations as India’s first small finance bank in 2016 and is among the leading SFBs in India in terms of cost of funds, retail deposits, and CASA deposits for fiscal 2023. It has the highest proportion of retail deposits at 97.90%, along with a CASA ratio of 41.88%, resulting in the lowest cost of funds of 5.12% among the SFBs as of fiscal 2023, according to the company's RHP report.

Its loan portfolio comprises agricultural, MSME and trading, mortgage lending, retail loans, and loans to large corporates. As a small finance bank, it focuses primarily on agricultural, MSME, trading, retail, and mortgage loans, which constitute the majority of its loans.

Also Read: New Swan IPO allotment to be out soon; here's how to check allotment status The bank primarily focuses on middle-income customer segments, such as customers with an average annual income of ₹0.4 million to ₹5 million. Its disbursements increased from ₹13,450.77 million for fiscal 2021 to ₹19,906.71 million in FY23.

Further, its advances as of March 31, 2023, 2022, and 2021 and the three months ended June 30, 2023, were ₹55,072.67 million, ₹46,887.03 million, ₹37,629.87 million, and ₹55,193.27 million, respectively, which grew at a CAGR of 20.98% between Fiscal 2021 and Fiscal 2023. As of June 30, 2023, the bank had 172 branches, of which 72 were rural branches, 59 were semi-urban branches, 30 were urban branches, and 11 were metro