Bhubaneswar: Capital Small Finance Bank, which is amongst the leading SFBs in India in terms of cost of funds, retail deposits and CASA deposits for Fiscal 2023 (Source: CRISIL MI&A Report) has filed its Draft Red Herring Prospectus (“DRHP”) for IPO with Securities and Exchange Board of India (“SEBI”).
The bank commenced operations as India’s first small finance bank in 2016 and has the most diversified portfolio with sizeable book in multiple asset classes as compared to other SFBs with a highest proportion of secured lending of 99.82% as of Fiscal 2023 among the SFBs. (Source: CRISIL MI&A Report).
The Bank plans to raise funds via Initial Public Offering through issue of equity share of face value ₹ 10 each comprising of fresh issue of equity shares aggregating up to Rs. 450 crores (“The Fresh Issue”) and an offer for sale of up to 2,412,685 equity shares (“The Offer for Sale”).
The Offer for Sale up to 2,412,685 equity shares comprises of up to 836,728 equity shares by Oman India Joint Investment Fund II; 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 (The “Investor Selling Shareholder”) and up to 563,769 equity shares by certain other persons listed in DRHP (The “Other Selling Shareholders”).
Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting Bank’s Tier – I capital base to meet Bank’s 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 (Formerly known as Edelweiss Securities Limited), DAM Capital Advisors Limited and Equirus Capital Private Limited are the Book Running Lead Managers of the issue.
The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).
