Punjab-based Capital Small Finance Bank is planning an initial public offering (IPO) comprising a fresh issue of equity shares aggregating up to ₹450 crore and offer for sale (OFS) aggregating up to about 38.40 lakh equity shares.

Among the major shareholders selling their shares under OFS include Oman India Joint Investment Fund II, Amicus Capital Private Equity I LLP, Gurdev Singh Samra (jointly with Balbir Kaur Samra), Gurnam Singh (jointly with Bahadur Singh and Amrik Singh) PI Ventures LLP, Tarlochan Singh Hyare and Rashpal Singh (jointly with Surinder Kaur).

Private placement: ₹90 cr

As per its Draft Red Herring Prospectus, Capital SFB Bank may, in consultation with the Book Running Lead Managers, consider a private placement of equity shares for cash consideration aggregating up to ₹90 crore, prior to filing of the Red Herring Prospectus with the Registrar of companies.

To augment capital base

The Bank proposes to utilise the net proceeds from the fresh issue towards augmenting its tier – I capital base to meet its future capital requirements.

As on June 30, 2021, Capital Small Finance Bank had gross advances of ₹3,642 crore and deposits of ₹5,283 crore.

The Bank reported a 79 per cent year-on-year increase in the first quarter of FY22 at ₹12.18 crore (₹6.80 crore in the year ago period).

As of June 30, 2021, the Bank was present in four States (Punjab, Haryana, Rajasthan and Delhi) with 159 branches (141 branches in Punjab alone) and 161 ATMs with 74 per cent of the branches located in rural and semi-urban areas.

Capital SFB commenced its operations as a small finance bank (SFB) with effect from April 24, 2016. Prior to this date, it was a local area bank.

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