Capital Small Finance Bank IPO: INRCapital Small Finance Bank's (SFB) $523 million initial public offering (IPO) begins today, February 7th, and closes on February 9th. The company fixed his IPO price range in the range of. INR445-465.
Prior to the bid, Capital Small Finance Bank raised funds. INR$57 billion from major investors. White Oak Capital, Nippon Life India, Edelweiss Tokyo Life Insurance, Ashoka India Equity Investment Trust, 360 ONE Mutual Fund, HDFC Life Insurance Company, Ananta Capital Ventures Fund, ICICI Prudential Life Insurance Company, SBI General Insurance Company , Kotak Mahindra Life Insurance Company is listed in the anchor book of participating companies.
Capital Small Finance Bank's GMP Today
The company's shares on the gray market continued to trade at a premium. INR43. This is INR511, up 9.19% from IPO price INR465. GMP was the same as last session (6 February).However, it was rejected INRFebruary 5th is 47, INR50 people on February 4th.
However, it is important to note that the gray market premium is only an indicator of the performance of a company's stock in the private market and can change quickly.
Capital Small Finance Bank IPO: Should you buy?
Anand Rati: Long term subscription.
Capital Small Finance Bank is a retail debt franchise with a high share of CASA. We have a highly secure and diversified portfolio. Credit evaluation processes and risk management practices help maintain good asset quality and low delinquencies. They have years of understanding the market and customer base and are able to meet the financial requirements of existing and potential customers.
please read here: Rashi Peripherals IPO: GMP, issue details and 10 important things to know
In the upper price range, the company has a valuation of 2.01x P/B and a market capitalization of 2.01x. INRAfter the issuance of shares, the company will earn $21.08 billion, with a return on net assets of 15.33%. The brokerage believes the company's valuation is fair and recommends a 'long subscription' rating for the IPO.
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SMC Global: Subscribe
Capital Small Finance Bank stands out as a pioneering non-NBFC microfinance entity that received the coveted SFB license in 2015. Currently based in the north, this ambitious company aims to expand across the country through an extensive branch network in the coming years. The bank believes it is well-positioned to take advantage of tailwinds and intends to continue expanding its portfolio with a focus on secured lending, which it believes provides a competitive edge against competitors. With consistent sales and bottom line growth, this stock looks attractive at a price. Smart investors looking for long-term returns may see this as a promising opportunity.
Sushi Finance: Long term subscription
The company follows a branch-based operating model and has a strong presence in semi-urban and rural areas. The company intends to continue growing its loan book organically, with a focus on secured loans. We also plan to leverage technology and data analytics for scalable and profitable growth. Small finance business in India is becoming a highly competitive field. The company has generated negative cash flow in the past. However, the company stands to benefit from the expected strong penetration of banking and microfinance services in rural and semi-urban areas. Total profit increased from FY2021 to FY2023 at a CAGR of 14.1%. The net profit margin as of FY2013 was 13.85% and 14.1% as of FY2014. As of FY23, gross NPA and net NPA were 2.77% and 1.36% respectively. His ROE and ROA of the company were 16.62% and 1.22% as of FY23 and 16.45% and 1.28% as of FY24. With all these factors in mind, cash-rich investors are likely to subscribe to his IPO with a long-term outlook.
Marwadi Financial Services: Subscribe
Considering the BVPS of September 23rd; INRThe price is $257.92 on a post-issue basis, and the company plans to list at a P/B of 1.81 times market capitalization. The P/B of peers IDFC First Bank, AU SFB, Equitas SFB, Suryoday SFB, and Ujjivan SFB is 2.11x, 3.82x, 2.25x, 1.09x, and 2.72x, while it is $21,080 million. We assign a 'Subscribe' rating to this IPO due to its continuous improvement in operational and profitability metrics and consistent track record of growth. It is also available at a reasonable valuation compared to its peers.
Dilip Davda: May subscribe
The small finance bank is currently a financial services provider focused on the northern region and is looking to increase its pan-India presence in the coming years by expanding its branch network. During the reporting period, sales and bottom line recorded steady growth. Based on FY24 annual earnings, this stock appears to be aggressively priced. Dilip Davda, contributing editor at Chittorgarh.com, believes savvy investors may park their money for long-term rewards.
Capital Small Finance Bank IPO Details
This issuance is combined with a new issuance of 9.6 million shares. INROffer for sale of 450 million shares and a total of 16 billion shares INR73 billion 70 million. The minimum lot size for applications is 32 shares and multiples thereof. The minimum investment amount required for an individual investor is INR14,976.
The bank proposes to utilize the net proceeds from the new issue to augment its Tier-I capital base to meet future capital requirements. In addition, proceeds from the new issue will also be used to cover costs associated with the offer.
Nuvama Wealth Management Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd) and Equirus Capital Private Limited are the book-running lead managers for the Capital SFB IPO and Link Intime India Private Ltd is the registrar for the issue.
Capital SFB IPO allocation is expected to be finalized on Monday, February 12, 2024. Capital SFB IPO will be listed on BSE, NSE with tentative listing date fixed at Wednesday, February 14, 2024.
About Capital Small Finance Bank
In 2015, Capital SFB became the first non-NBFC microfinance entity to obtain an SFB license. The company follows a branch-based operating model and has a strong presence in semi-urban and rural areas. Capital Small Finance Bank is headquartered in Jalandhar, Punjab and has strategically expanded his SFB operations across northern Indian states such as Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh and UT Chandigarh. Masu. As of June 30, 2023, Capital Small Finance Bank is present in five states and one union territory with a total of 172 branches and 174 ATMs.
Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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