Weak Debut: Capital Small Finance Bank share price lists at ₹430.25 on NSE, an 8% discount to IPO price
₹430.25 on NSE, an 8 percent discount to its issue price of ₹468. Meanwhile, on BSE, the stock fell 7 percent from its issue price to list at ₹435. The ₹523.
07 crore initial public offering (IPO) of Capital Small Finance Bank was open for subscription between February 7 and February 9 with a price band in the range of ₹445-468. Overall, the issue witnessed a decent subscription in the 4 days of bidding and was subscribed 4.17 times. It received bids for 3.26 crore shares as against 78.23 lakh in the offer.
The Qualified Institutional Buyers' (QIB) category was bis 6.85 times while the Non-Institutional Investors’ (NII) portion was booked 4.23 times. Meanwhile, the retail investor part was subscribed 2.6 times. The issue is a combination of a fresh issue of 96 lakh shares aggregating to ₹450.00 crore and an offer for sale of 16 crore shares aggregating to ₹73.07 crore.
The minimum lot size for an application is 32 shares and in multiples thereof. The minimum amount of investment required by retail investors is ₹14,976. The bank proposes to utilise the net proceeds from the fresh issue towards augmenting the Tier-I capital base to meet future capital requirements.
Further, the proceeds from the fresh issue will also be used towards meeting the expenses in relation to the offer. Nuvama Wealth Management Limited, Dam Capital Advisors Ltd (Formerly IDFC Securities Ltd), and Equirus Capital Private Limited are the book-running lead managers of the Capital SFB IPO, while Link Intime India Private Ltd is the registrar for the issue. In 2015, Capital SFB became the first non-NBFC microfinance entity to receive the SFB license.
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