Capital Small Finance Bank IPO: A Deep Dive into the Upcoming Offering 2024

Capital Small Finance Bank IPO:

The Indian financial sector is buzzing with activity, and Capital Small Finance Bank’s (CSFB) forthcoming IPO promises to be yet another thrilling chapter. This article goes into the IPO’s features, including the date, price, allotment process, and major financial aspects, to assist you in making informed investing decisions.

IPO Details:

• Issue Date: February 7, 2024, to February 9, 2024
• Price Band: ₹445 – ₹468 per share
• Minimum Lot Size: 32 shares
• Minimum Investment: ₹14,976 (at the upper price band)
• Issue Size: 11,176,713 shares (aggregating up to ₹523.07 Crores)
• Fresh Issue: 9,615,384 shares (aggregating up to ₹450.00 Crores)
• Offer for Sale (OFS): 1,561,329 shares
• Listing: BSE, NSE (tentative date: February 14, 2024)

Allotment Process:

• The application window for the IPO opens on February 7th and closes on February 9th.
• Allotment of shares is expected to be finalized by February 12th.
• You can check your allotment status on the websites of the stock exchanges (BSE, NSE) or the registrar’s website (Link Intime India Private Ltd) after the allotment date.
• Refunds for unallotted shares will be credited to your bank account within a few days after the allotment.

Key Financials:

• CSFB has been profitable for the last three financial years, with a net profit of ₹176 Crore in FY23.
• The bank’s gross non-performing assets (GNPAs) ratio is relatively low, at 2.27% in FY23.
• Its capital adequacy ratio (CAR) is also healthy, at 18.3% as of September 30, 2023.
• The bank has a strong focus on micro, small and medium enterprises (MSMEs) and affordable housing, which are key growth segments in the Indian economy.

Investment Considerations:

• The IPO is priced at a P/E ratio of 25-27 based on FY23 earnings, which is higher than the average P/E ratio of listed small finance banks.
• The bank’s focus on MSMEs and affordable housing could be a positive factor for its future growth.
• However, investors should carefully consider the risks involved, such as the competitive landscape and the potential impact of economic downturns on the bank’s performance.

Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult with a qualified financial advisor before making any investment decisions.