Capital Small Finance Bank
Book Building issueMainboard₹523 Cr issue
-7.05%
Listing gain over issue price
Issue size
₹523 Cr
1 lot at cut-off
₹14,976
Lot size
32shares
Open
07 Feb 2024
Close
09 Feb 2024
Allotment
12 Feb 2024
Listing
14 Feb 2024
Listing performance
Issue price
₹468
Listed at
₹435
Listing-day close
₹435
Latest price
₹259.15
Close on 23 Oct 2026
Listing gain
-7.05%
Return since issue
-44.63%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Feb 2024 – 09 Feb 2024
- Listing date
- 14 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹468 per share
- Lot size
- 32 shares
- Issue type
- Book Building issue
- Total issue size
- ₹523 Cr
- Market cap at offer price
- ₹2,104 Cr
- Promoter holding
- 23.96% → 18.85% pre-issue → post-issue
- ISIN
- INE646H01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Nuvama Wealth Management Ltd.
- Registered office
- MIDAS Corporate Park, 3rdFloor, 37, G.T.Road, Punjab
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 33,53,013 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 32 shares per lot, in multiples, at ₹468
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 32 | ₹14,976 |
| Retail (max) | 13 | 416 | ₹1,94,688 |
| S-HNI (min) | 14 | 448 | ₹2,09,664 |
| S-HNI (max) | 66 | 2,112 | ₹9,88,416 |
| B-HNI (min) | 67 | 2,144 | ₹10,03,392 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
33,53,013
Anchor portion
₹157 Cr
at ₹468 per share
Valuation and performance
Valuation at offer price
₹468 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 26.48 | 24.19 |
| P/E (×) | 17.67 | 19.35 |
| Price to book (×) | 1.81 | — |
| Market cap | — | ₹2,104 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 15.33%
- Debt / equity
- 0.95
- NAV per share
- ₹178.27
- Price to book
- 1.81
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Capital Small Finance Bank
Capital Small Finance Bank Limited was incorporated as 'Capital Local Area Bank Limited' on May 31, 1999, and commenced business on August 12, 1999. It was converted from a local area bank to a small finance bank on March 4, 2016, pursuant to RBI approval. The Bank offers a range of banking products on both asset and liability sides across six states and one union territory in India. Its asset products primarily include agriculture loans, MSME and trading loans, and mortgages, focused on middle-income customer segments. The Bank has over two decades of experience in the banking industry. As of the DRHP date, it operates without any subsidiaries and is regulated by the Reserve Bank of India.
Company Analysis
from RHPCapital Small Finance Bank Limited is a regulated small finance bank operating in North India, offering agricultural loans, MSME loans, trading loans, and mortgages to middle-income customer segments across Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and Chandigarh.
Capital Small Finance Bank Limited was incorporated as 'Capital Local Area Bank Limited' on May 31, 1999, and commenced business on August 12, 1999. It was converted from a local area bank to a small finance bank on March 4, 2016, pursuant to RBI approval. The Bank offers a range of banking products on both asset and liability sides across six states and one union territory in India. Its asset products primarily include agriculture loans, MSME and trading loans, and mortgages, focused on middle-income customer segments. The Bank has over two decades of experience in the banking industry. As of the DRHP date, it operates without any subsidiaries and is regulated by the Reserve Bank of India.
BankingSmall Finance BankingAgricultural lendingMSME lendingRetail lending
Objects of the Issue
- Augmentation of the Bank's Tier-1 capital base [●] p.20
- Augmenting the Bank's Tier-I capital base to meet future capital requirements arising out of growth in assets, primarily advances and investment portfolio, and to ensure compliance with applicable RBI regulations and guidelines ₹4,500 million (Fresh Issue component) p.145
- Augmentation of Tier-I capital base to meet future capital requirements and for increased branch network and business expansion ₹4,500.00 million (Fresh Issue) p.150
- Information not found in this section
- Not specified in this part of the document
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 4,500.00 million
- Offer for Sale
- Up to 1,561,329 Equity Shares aggregating up to ₹ [●] million
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The Bank generates revenue primarily through interest earned on advances and loans (73.44% of total revenue for the six months ended September 30, 2023), followed by income on investments, interest on balances with RBI, commission and brokerage, and other non-interest income. The Bank accepts deposits and extends credit to small business units, MSME, small and marginal farmers, and other unorganised sector entities through high technology-low-cost operations.
Business Segments
Primary lending business providing interest income on advances and loans extended to customers
Revenue from investment portfolio held by the Bank
Interest earned on funds deposited with Reserve Bank of India and inter-bank lending
Non-interest income from commission, exchange transactions and brokerage services
Lending to agriculture and allied sectors
Lending to micro, small and medium enterprises and trading businesses
Housing and residential/commercial property mortgage lending
Investment portfolio and treasury management
Provides secured agricultural loans to farmers
Provides secured lending to micro, small and medium enterprises and trading businesses
Provides home loans and mortgage financing
Provides other secured lending products
Provides agricultural loans to farmers and allied activities sector
Provides working capital and machinery loans to micro, small and medium enterprises and trading businesses
Provides housing loans and loans against property
Provides KCC (Kisan Credit Card) and agriculture term loans for mid-sized agriculturalists with average land holding of five acres or more, lending for crops under the MSP scheme of the Government of India
Provides working capital financing, machinery loans, and project financing to small and medium enterprises, small traders, and service segments
Provides loans for purchase, construction, expansion, renovation of house property and loans against property for individual borrowers
Provides gold loans, auto loans, and personal loans for consumption purposes
Provides credit to large corporates including NBFCs and MFIs with investment grade or above, with conservative approach and 100% collateralization for below investment grade entities
Accepts savings accounts, current accounts, term deposits, and NRE/NRO deposits from retail and institutional customers
Distribution of insurance products, forex services, remittance services, safe deposit lockers, and trading/demat accounts
Advances to agricultural and allied activities sector
Advances to micro, small and medium enterprises and trading sector
Advances for housing and mortgage purposes
Advances to large corporates and other customer segments
Investment in government securities and other approved securities, money market operations including repo/reverse repo transactions, and management of the Bank's investment portfolio
Providing credit facilities, deposits and other banking services to corporate and wholesale customers, including advances to small finance sector and other commercial entities
Providing credit products including agricultural loans, MSME advances, and services to individuals and small businesses; accepting retail deposits; and providing retail banking services
Other banking operations including fee-based services, insurance commissions, and ancillary banking services
Treasury operations including investments in government securities, treasury bills, and interest on balance with RBI and inter-bank funds
Corporate and wholesale banking services
Retail banking services including consumer loans, savings accounts, and related products
Other banking operations and services
SWOT Analysis
Strengths
- • Established banking presence with over two decades of experience(p.19)
- • First small finance bank in India with regulatory approval(p.19)
- • Diversified asset products serving middle-income segments(p.19)
- • Strong capital adequacy ratio(p.21)
- • High proportion of secured assets(p.21)
- • Retail-focused deposit franchise with high CASA(p.154)
- • Secured and diversified advances portfolio(p.154)
- • Strong profitability growth track record(p.154)
- • Streamlined credit assessment and risk management(p.154)
- • Professional and experienced leadership team(p.154)
- • Customer-centric approach targeting specific segments(p.154)
- • Retail-focused deposit franchise with high CASA ratio(p.211)
- • Highly secured and diversified loan portfolio(p.211)
- • Strong and consistent asset quality across business cycles(p.203)
- • Experienced management with decades of banking expertise(p.214)
- • Lowest cost of deposits and funds among comparable SFBs(p.202)
- • Consistent track record of profitability improvement(p.214)
- • Highest proportion of retail deposits among comparable SFBs(p.201)
- • Geographic diversification with focus on high-growth northern region(p.205)
- • RBI-licensed small finance bank with scheduled bank status(p.218)
- • Extensive secured loan portfolio with 99.85% secured advances(p.233)
- • Highest CASA ratio among comparable SFBs at 37.76%(p.233)
- • Highest retail deposit proportion (93.59%) vs all comparable peers(p.233)
- • Lowest average GNPA at 2.52% and consistent asset quality 2-3% range(p.233)
- • Diversified loan portfolio spanning agriculture, MSME, retail and mortgages(p.232)
- • Lowest operating expense ratio among SFBs (2.95% of average assets)(p.234)
- • Granular deposit base with lowest concentration risk(p.233)
- • Strong capital adequacy ratio exceeding regulatory requirement(p.318)
- • Significant geographic expansion and branch network growth(p.376)
- • Successful digital transformation with high digital transaction adoption(p.377)
- • Controlled operating expense ratio with declining trend(p.377)
- • Maintained relatively low NPA levels through effective credit function(p.378)
- • Strong liquidity position with LCR well above regulatory minimum(p.322)
- • Clean audit reports with no qualifications or adverse remarks(p.379)
- • Strong profitability growth, with net profit increasing 49.59% from FY2022 to FY2023(p.390)
- • Significant advances portfolio growth, from ₹46,348.00 million as of March 31, 2022 to ₹57,841.85 million as of September 30, 2023(p.392)
- • Stable retail deposit base providing low-cost funding source(p.394)
- • Strong deposit growth and CASA accumulation(p.394)
- • Low customer and borrower concentration risk(p.403)
Weaknesses
- • SEBI settlement over non-compliant equity share allotments(p.22)
- • Missing corporate records and filing documentation(p.39)
- • Past regulatory reporting delays and RBI fines imposed(p.41)
- • Ineligibility of current statutory auditors for FY 2024(p.22)
- • Negative cash flows from operations in prior years(p.41)
- • High proportion of business dependent on rural and semi-urban areas(p.44)
- • Elevated employee attrition rates(p.44)
- • High contingent liabilities from customer guarantees(p.34)
- • Rising NPA levels and credit quality deterioration(p.46)
- • Inadequate provision coverage for NPAs(p.46)
- • High geographic concentration in Punjab(p.53)
- • Declining CASA ratio(p.57)
- • High cost-to-income ratio(p.51)
- • Dependence on business correspondents(p.60)
- • High debt levels and refinancing risk(p.49)
- • Collateral value deterioration risk(p.58)
- • Missing historical corporate records create regulatory compliance risk(p.131)
- • Previous SEBI settlement regarding shareholder allotment practices(p.140)
- • Limited geographic footprint restricted to northern region(p.208)
- • Small asset base relative to industry peers(p.206)
- • High concentration of advances in MSME and agricultural segments(p.205)
- • Lower spreads compared to some competing SFBs(p.202)
- • Declining CASA ratio in recent periods(p.210)
- • Geographic concentration in 6 states with Punjab representing 83.97% of advances(p.223)
- • Limited scale relative to major commercial banks(p.221)
- • Dependence on retail deposits for funding(p.221)
- • Cost structure pressures from mandatory 25% rural branch requirement(p.239)
- • Dependent on a concentrated geographic region for majority of business(p.376)
- • High proportion of branches in rural and semi-urban areas creates operational complexity(p.376)
- • Divergence identified by RBI in asset classification and provisioning(p.349)
- • Rising gross NPA ratio over recent periods(p.378)
- • Heavy investment requirement in technology and branch expansion(p.376)
- • Potential accounting headwinds from Ind AS transition when mandated for banks(p.379)
- • Dependence on refinance facilities with limited tenure and prepayment penalties(p.405)
- • Increasing interest expense pressures on deposits, rising 26.95% from FY2022 to FY2023(p.390)
- • GNPA remained elevated at 2.73% as of September 30, 2023(p.400)
- • Debt obligations totaling ₹5,295.10 million as of December 31, 2023 requiring servicing(p.405)
- • Litigation exposure with 209 SARFAESI recovery cases involving approximately ₹796.26 million(p.409)
Opportunities
- • Government mandate for financial inclusion through small finance banks(p.19)
- • Expanding addressable market with on-tap SFB licensing guidelines(p.19)
- • Geographic expansion potential across underserved regions(p.19)
- • Deepening distribution in existing states(p.56)
- • Strengthening liability franchise(p.57)
- • Expanding delivery channels(p.56)
- • Growth in loan portfolio(p.56)
- • Capital raise to fund loan portfolio expansion(p.150)
- • Benefits from stock exchange listing(p.150)
- • Tier-I capital augmentation for future growth(p.150)
- • Branch network expansion potential(p.150)
- • Large untapped credit market in Northern India with low penetration(p.183)
- • Strong growth potential in small ticket MSME loans segment(p.194)
- • Expanding middle-income household population driving financial inclusion(p.179)
- • Growing mortgage lending opportunity in tier-II and tier-III cities(p.199)
- • Strong growth in SFB sector with expected 22-24% CAGR through FY2025(p.187)
- • Massive agricultural credit gap in high-production states(p.192)
- • Large MSME credit gap estimated at ₹92 trillion as of Fiscal 2023(p.195)
- • Expansion into northern, eastern and central regions with significant untapped potential(p.234)
- • Growing SFB sector share expected to reach 1.5% deposits and 1.6% credit by Fiscal 2025(p.234)
- • Fee income expansion through insurance, forex, remittance and ancillary services(p.223)
- • Agricultural lending growth through MSP-backed crop financing(p.218)
- • Branch network expansion aligned with financial inclusion mandate(p.226)
- • Digital banking channel adoption in underbanked segments(p.229)
- • Expansion into new adjacent geographies with established brand presence(p.376)
- • Growing digital banking adoption enabling faster scaling(p.377)
- • Opportunity to leverage data analytics for targeted customer profiling(p.378)
- • Growing rural and semi-urban credit market penetration(p.376)
- • Expansion of product portfolio beyond core lending(p.371)
- • Priority sector lending expansion, with priority sector advances at ₹36,405.63 million as of September 30, 2023(p.393)
- • Growth in retail banking segment revenue, increasing from ₹4,299.81 million in FY2022 to ₹5,150.30 million in FY2023(p.396)
- • Expansion of term loan portfolio, growing from ₹23,299.11 million to ₹31,818.14 million(p.393)
- • Leverage public capital market access post-IPO for growth financing(p.429)
Threats
- • Intense competition from larger banks and NBFCs(p.36)
- • Regulatory risk from strict compliance requirements(p.34)
- • RBI inspection findings and observations compliance burden(p.34)
- • NPAs and credit risk exposure(p.44)
- • Geographic concentration risk in North India(p.31)
- • Interest rate volatility risk(p.31)
- • First public offering liquidity and trading risk(p.1)
- • Dependence on interest income from lending business(p.39)
- • Macroeconomic downturn in India(p.74)
- • COVID-19 or other pandemics(p.74)
- • Regulatory changes affecting operations(p.73)
- • Interest rate volatility impacting NIM(p.56)
- • Inflation and cost pressures(p.73)
- • Credit information infrastructure limitations(p.74)
- • Systemic financial sector risks(p.75)
- • Regulatory restrictions on capital raising(p.49)
- • Regulatory capital adequacy requirements(p.150)
- • Increased competition from large private banks in retail deposit mobilization(p.184)
- • Rising interest rate environment impacting borrower repayment capacity(p.191)
- • Regulatory compliance costs and capital requirements limiting growth(p.210)
- • Asset quality deterioration risk due to cyclical downturns in agriculture and MSME sectors(p.191)
- • Systemic risks from concentration in MFI-dependent SFBs affecting the sector(p.188)
- • Economic slowdown impacting credit growth and deposit inflows(p.179)
- • Monsoon-dependent agriculture sector risk given geographic focus(p.181)
- • Increased competition from scheduled commercial banks and other SFBs post RBI on-tap licensing(p.230)
- • Regulatory requirements more stringent for SFBs vs scheduled banks(p.230)
- • Interest rate risk from RBI monetary policy changes(p.227)
- • Liquidity risk from deposit market conditions(p.228)
- • Operational risk and cyber security threats to banking systems(p.228)
- • Agricultural credit exposure to weather and commodity price risks(p.218)
- • Intense competition from multiple banking and non-banking entities(p.377)
- • Interest rate volatility affecting net interest income(p.376)
- • Regulatory compliance burden and potential regulatory changes(p.375)
- • Priority sector lending requirements limiting portfolio flexibility(p.375)
- • Risk of adverse economic conditions affecting borrower repayment capacity(p.378)
- • Uncertainty around fintech disruption and digital banking competition(p.377)
- • Rising interest rate environment impacting profitability, with other income down 8.69% due to reduced investment sale opportunities(p.390)
- • Intense competition in the Indian small finance bank industry(p.403)
- • Regulatory capital constraints and requirements from RBI(p.398)
- • Uncertainty from potential COVID-19 impact on business results(p.379)
- • Operating expenses rising faster than income growth (13.50% vs 14.72% income growth)(p.390)
- • Restrictive RBI covenants limiting capital structure changes and requiring regulatory approval for shareholder changes(p.399)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sarvjit Singh Samra | Promoter | 11.78% | — |
| Amarjit Singh Samra | Promoter | 4.63% | — |
| Navneet Kaur Samra | Promoter | 2.50% | — |
| Surinder Kaur Samra | Promoter | 2.64% | — |
| Dinesh Gupta | Promoter | 0.84% | — |
| Sarvjit Singh Samra | Promoter/Managing Director and Chief Executive Officer | — | — |
| Sarvjit Singh Samra | Promoter | 11.78% | [●] |
| Amarjit Singh Samra | Promoter | 4.63% | [●] |
| Navneet Kaur Samra | Promoter | 2.50% | [●] |
| Surinder Kaur Samra | Promoter | 2.64% | [●] |
| Dinesh Gupta | Promoter | 0.84% | [●] |
| Sarvjit Singh Samra | Promoter/Promoter Group | — | — |
| Sarvjit Singh Samra | Promoter | — | — |
| Amarjit Singh Samra | Promoter Group | — | — |
| Surinder Kaur Samra | Promoter Group | — | — |
| Navneet Kaur Samra | Promoter Group | — | — |
| Dinesh Gupta | Promoter | — | — |
| Sarvjit Singh Samra | Promoter | 11.78% | — |
| Amarjit Singh Samra | Promoter | 4.63% | — |
| Navneet Kaur Samra | Promoter | 2.50% | — |
| Surinder Kaur Samra | Promoter | 2.64% | — |
| Dinesh Gupta | Promoter | 0.84% | — |
| Information not provided in this section | — | — | — |
| Vijay Kumar Bhandari (jointly with Sneh Bhandari) | Selling Shareholder | — | — |
| Rashpal Singh (jointly with Surinder Kaur) | Selling Shareholder | — | — |
| Oman India Joint Investment Fund II | Investor Selling Shareholder | — | — |
| Amicus Capital Private Equity I LLP | Investor Selling Shareholder | — | — |
| Oman India Joint Investment Fund II | Investor Selling Shareholder | — | — |
| Amicus Capital Private Equity I LLP | Investor Selling Shareholder | — | — |
| Amicus Capital Partners India Fund I | Investor Selling Shareholder | — | — |
| Vijay Kumar Bhandari (jointly with Sneh Bhandari) | Other Selling Shareholder | — | — |
| Rachna Monga | Other Selling Shareholder | — | — |
| Rashpal Singh (jointly with Surinder Kaur) | Other Selling Shareholder | — | — |
| Nalini Rampilla | Other Selling Shareholder | — | — |
| Kalyana Chakravarthy Pilla | Other Selling Shareholder | — | — |
| Darshna Devi | Other Selling Shareholder | — | — |
| Ramesh Kaur | Other Selling Shareholder | — | — |
Leadership
Sarvjit Singh Samra · Managing Director and Chief Executive Officer
Navin Kumar Maini · Independent Director and Part-Time Chairman
Munish Jain · Executive Director and Chief Financial Officer
Amit Sharma · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Capital Small Finance Bank IPO FAQs
What is the lot size of Capital Small Finance Bank IPO?
The minimum lot size of Capital Small Finance Bank IPO is 32 shares. One lot costs ₹14,976 at the cut-off price.
When does Capital Small Finance Bank IPO open and close?
Capital Small Finance Bank IPO opened for subscription on 07 Feb 2024 and closed on 09 Feb 2024.
What is the listing date of Capital Small Finance Bank IPO?
Capital Small Finance Bank IPO listed on 14 Feb 2024.