Dar Credit & Capital
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 May 2025 – 23 May 2025
- Listing date
- 28 May 2025
- Face value
- ₹10 per share
- Issue price
- ₹60 per share
- Lot size
- 2,000 shares
- Listing at
- NSE
- Total issue size
- ₹25.66 Cr
- Market cap at offer price
- ₹85.66 Cr
- Promoter holding
- 98.47% → 68.98% pre-issue → post-issue
- ISIN
- INE04Q901010
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Business Tower, 206, AJC Bose Road, 6 th Floor, Unit No.6B, West Bengal
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 | 12,16,000 | — | — |
| Market maker | 2,16,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹60
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.97 | 4.59 |
| P/E (×) | 15.11 | 13.07 |
| Price to book (×) | 0.92 | — |
| Market cap | — | ₹85.66 Cr |
Key performance indicators
- Return on net worth
- 6.08%
- ROCE
- 9.22%
- Debt / equity
- 2.51
- PAT margin
- 12.38%
- EBITDA margin
- 66.40%
- NAV per share
- ₹65.25
- Price to book
- 0.92
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Dar Credit & Capital
Dar Credit & Capital Limited was incorporated on August 10, 1994 as a Public Limited Company under the Companies Act, 1956. The company obtained its Certificate of Registration from the Reserve Bank of India as a Non-Banking Finance Company on June 28, 2007. Over the past 30 years, DCCL has developed expertise in the financing sector in India with a deep understanding of underbanked and underserved customers. The company offers three primary financial products: Personal Loans, Unsecured MSME Loans, and Secured MSME Loans. It specializes in providing credit solutions to low-income individuals, particularly those in class-four (Group D) employment roles such as cleaners, sweepers, and peons working in municipalities, and extends credit to small-scale shopkeepers, traders, manufacturers, persons engaged in agri and agri-allied business, and vendors with a focus on empowering women entrepreneurs. DCCL operates from its headquarters in Kolkata and regional office in Jaipur, with branch offices and camp offices across West Bengal, Rajasthan, Bihar, Jharkhand, Madhya Pradesh, and Gujarat. The company has implemented digital sourcing and digital disbursement of loans, with a significant proportion of sourcing and collections digitalized using mobile phones and tablets.
Company Analysis
from RHPDar Credit & Capital Limited is a non-banking finance company offering personal loans, unsecured MSME loans, and secured MSME loans to low-income individuals and micro, small and medium enterprises across India.
Dar Credit & Capital Limited was incorporated on August 10, 1994 as a Public Limited Company under the Companies Act, 1956. The company obtained its Certificate of Registration from the Reserve Bank of India as a Non-Banking Finance Company on June 28, 2007. Over the past 30 years, DCCL has developed expertise in the financing sector in India with a deep understanding of underbanked and underserved customers. The company offers three primary financial products: Personal Loans, Unsecured MSME Loans, and Secured MSME Loans. It specializes in providing credit solutions to low-income individuals, particularly those in class-four (Group D) employment roles such as cleaners, sweepers, and peons working in municipalities, and extends credit to small-scale shopkeepers, traders, manufacturers, persons engaged in agri and agri-allied business, and vendors with a focus on empowering women entrepreneurs. DCCL operates from its headquarters in Kolkata and regional office in Jaipur, with branch offices and camp offices across West Bengal, Rajasthan, Bihar, Jharkhand, Madhya Pradesh, and Gujarat. The company has implemented digital sourcing and digital disbursement of loans, with a significant proportion of sourcing and collections digitalized using mobile phones and tablets.
Objects of the Issue
- Augment the capital base of our Company ₹2200.00 lakhs p.21
- General corporate purposes ₹105.70 lakhs p.21
- Augment the capital base of our Company ₹2,200.00 lakhs p.93
- General Corporate Purposes ₹105.70 lakhs p.95
- Issue Related Expenses ₹259.90 lakhs p.95
- Funding capex for business expansion and operations
- General corporate purposes
Issue Structure
- Total Issue
- 42,76,000 equity shares of face value of ₹10 each aggregating ₹2565.60 lakhs
- Fresh Issue
- 42,76,000 equity shares of face value of ₹10 each aggregating ₹2565.60 lakhs
- Offer for Sale
- Nil
- Price Band
- ₹57.00 to ₹60.00 per equity share
- Lot Size
- 2000 equity shares (minimum bid of 2000 equity shares and multiples of 2000 equity shares thereafter)
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue primarily through interest income on its loan portfolio, which represented 91.27% of total income for the nine months ended December 31, 2024. DCCL generates net interest income as the difference between interest charged on interest-earning assets (Personal and MSME loans) and interest paid on interest-bearing liabilities. The company also generates income from fee and other income sources.
Business Segments
SWOT Analysis
- • Experienced management team and established NBFC operations(p.93)
- • Strong capital adequacy position well above regulatory minimums(p.93)
- • Consistent profitability and positive earnings growth(p.53)
- • Strong EBITDA margins demonstrating operational efficiency(p.100)
- • Quick and efficient loan processing with flexible lending practices(p.124)
- • Strong understanding of local markets and regional economies(p.124)
- • Advanced technology and digital transformation for credit assessment(p.125)
- • Experienced and qualified management team(p.125)
- • Attractive interest rates and shorter processing time(p.125)
- • Strong underwriting process and risk management strategies(p.125)
- • Exclusive personal loan product for municipality employees with 30+ years experience(p.130)
- • Strong capital adequacy and low leverage ratios(p.118)
- • Established NBFC with long operating history and RBI certification(p.274)
- • Strong revenue growth trajectory over three years(p.274)
- • Strong profitability with improving margins(p.274)
- • Credit rating affirmation from CARE(p.274)
- • Positive net worth and improving return metrics(p.299)
- • Diversified lending portfolio across low-income segments(p.274)
- • High leverage with debt-equity ratio above 2.0x indicating financial risk(p.101)
- • Significant short-term borrowings of ₹9,407.06 lakhs creating liquidity pressure(p.52)
- • Concentrated shareholder base with promoters holding 98.47% pre-issue(p.80)
- • Limited track record of public market operations with first IPO(p.82)
- • Heavy dependence on few customer segments (municipalities and MSME)(p.127)
- • Rising NPA ratio in unsecured MSME portfolio(p.124)
- • Significant concentration in West Bengal (49.64% of portfolio)(p.127)
- • Small asset size relative to competitors in NBFC sector(p.118)
- • Dependence on personal guarantees from promoters for bank loans(p.153)
- • Limited branch network (27 branches) constraining reach(p.127)
- • Elevated debt-equity ratio indicating high leverage(p.274)
- • Low debt service coverage ratio indicating strain on cash generation(p.268)
- • Outstanding charges not yet registered with Registrar of Companies(p.225)
- • Significant tax litigation and demands pending(p.288)
- • Multiple criminal proceedings filed by company relating to defaulted loans(p.287)
- • Expansion of lending portfolio and asset base through capital augmentation(p.95)
- • Growth in consumer credit and MSME lending segments(p.93)
- • Listing on NSE EMERGE platform to enhance corporate visibility and access to capital markets(p.93)
- • Maintaining higher capital ratios to improve credit ratings and reduce borrowing costs(p.95)
- • Digital transformation and AI-enabled underwriting expansion(p.126)
- • Geographic expansion into underserved rural and semi-urban areas(p.126)
- • Strengthen risk and underwriting models with advanced analytics(p.126)
- • Growth in India's financial services sector and NBFC penetration(p.114)
- • Rising demand for credit in underserved segments(p.115)
- • Expansion of municipality employee loans to new states(p.130)
- • Government initiatives supporting microfinance and NBFC growth(p.114)
- • Expansion in underserved small town lending market(p.274)
- • Growth in loan disbursement driving revenue increase(p.281)
- • Access to capital markets through IPO to strengthen capital base(p.299)
- • Diversification through new revenue streams including business facilitation(p.279)
- • Regulatory changes in labor laws and data protection may increase compliance costs(p.46)
- • Natural disasters, pandemics and geopolitical events could severely impact business operations(p.46)
- • Sovereign credit rating downgrade could increase borrowing costs and limit market access(p.47)
- • Competition law enforcement and anti-competitive restrictions could limit business practices(p.47)
- • RBI increased risk weights on consumer credit reducing CRAR and requiring higher capital(p.95)
- • Highly competitive MSME lending market(p.130)
- • Competition from fintech companies, MFIs and other NBFCs(p.130)
- • Regulatory changes and compliance requirements for NBFCs(p.136)
- • Risk of municipal budget constraints affecting EMI deductions(p.129)
- • Interest rate and liquidity risks from borrowing costs(p.124)
- • Geographical concentration risk in Western and Eastern India(p.130)
- • Economic slowdown affecting municipal employment and customer repayment capacity(p.113)
- • Insurance adequacy concerns for loan portfolio protection(p.131)
- • Economic sensitivity affecting loan demand and repayment capacity(p.274)
- • Regulatory changes and RBI's NPA norm harmonization(p.277)
- • Competition from other financial service providers(p.286)
- • Interest rate volatility and borrowing cost fluctuations(p.281)
- • Concentration risk in loan portfolio with potential for defaults(p.263)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ramesh Kumar Vijay | Promoter | 22.71% | — |
| Mr. Rajkumar Vijay | Promoter | 3.22% | — |
| Mrs. Rakshita Vijay | Promoter | 10.26% | — |
| Ramesh Kumar Vijay | Promoter | 22.71% | 15.91% |
| Rajkumar Vijay | Promoter | 3.22% | 2.26% |
| Rakshita Vijay | Promoter Group | 10.26% | 7.18% |
| Nikita Vijay | Promoter Group | 8.69% | 6.09% |
| Tanvee Vijay | Promoter Group | 8.68% | 6.08% |
| Karan Vijay | Promoter Group | 9.85% | 6.90% |
| RR Family Trust | Promoter Group | 9.33% | 6.54% |
| Primerose Foundation | Promoter Group | 8.29% | 5.81% |
| Ramesh Kumar Vijay | Promoter | 22.71% | 15.91% |
| Rajkumar Vijay | Promoter | 3.22% | 2.26% |
| Ramesh Kumar Vijay | Promoter and Whole Time Director | 22.71% | — |
| Rajkumar Vijay | Promoter and Whole Time Director | 3.22% | — |
| Rakshita Vijay | Promoter | 10.26% | — |
| Ramesh Kumar Vijay | Promoter | 19.51% | — |
| Rakshita Vijay | Promoter | 9.85% | — |
| Ramesh Kumar Vijay and others (HUF) | Promoter | 8.80% | — |
| Karan Vijay | Promoter | 9.85% | — |
| Nikita Vijay | Promoter | 8.69% | — |
| Tanvee Vijay | Promoter | 8.69% | — |
| R R Family Trust | Promoter | 9.33% | — |
| Primerose Foundation | Promoter | 8.29% | — |
Leadership
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.