The ₹523-crore initial public offering of Capital Small Finance Bank opens today for public subscription with a price band of ₹445-468. The issue will close on February 9 (Friday) and the minimum lot size is 32 shares.
The IPO consists of ₹450 crore of a fresh issue and ₹73 crore of an Offer For Sale, through which promoters and external investors will dilute 5 per cent of their pre-issue holdings. Those selling shares in the OFS include Oman India Joint Investment Fund II, American Capital, and Amicus Capital Private Equity.
The company has reserved not more than 50 per cent of the issue for QIB, not less than 35 per cent of the issue for retail investors, and not less than 15 per cent for NIIs.
As part of the IPO exercise, Capital Small Finance Bank raised ₹157 crore from anchor investors on Tuesday. The SFB has allocated 33.53 lakh shares to 19 funds at ₹468 a share. Participants in the anchor book included Whiteoak Capital Fund, LC Pharos Multi Strategy Fund, Nippon Life India Trustee Ltd, 360 One Fund, Edelweiss Tokio Life Insurance Company, HDFC Life Insurance Company, and ICICI Prudential Life Insurance Company.
The Bank will utilise the proceeds from the fresh issue towards augmenting the tier-I capital base to meet its future capital requirements. The funds will also be used towards meeting the expenses in relation to the offer.
Capital Small Finance Bank Ltd commenced operations as India’s first small finance bank in 2016, following RBI’s approval on March 4, 2016. It offers a range of banking products on both the asset and liability side, in Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh.
Its asset products primarily include agriculture loans, MSME and trading loans (working capital, machinery loans, etc.), and mortgages (housing loans and loans against property).