Capital Small Finance Bank files IPO papers with Sebi

Capital Small Finance Bank has filed draft papers with markets regulator Sebi to mobilise funds through an Initial Public Offering

New Delhi: Capital Small Finance Bank has filed draft papers with markets regulator Sebi to mobilise funds through an Initial Public Offering (IPO).

The bank’s IPO comprises a fresh issue of equity shares aggregating up to Rs 450 crore and an Offer For Sale (OFS) of up to 24.12 lakh equity shares by existing investors, according to the Draft Red Herring Prospectus (DRHP).

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Those selling shares in the OFS include — Oman India Joint Investment Fund II, PI Ventures LLP, Amicus Capital Private Equity I LLP and Amicus Capital Partners India Fund I .

Also, the company plans to mobilise Rs 90 crore in the pre-IPO placement round. If such placement is undertaken, the size of the fresh issue will be reduced.

Proceeds from the fresh issue will be used towards augmenting the bank’s Tier – I capital base to meet future capital requirements. Besides, the funds will be used towards meeting the expenses in relation to the offer.

Capital Small Finance is amongst the leading small finance banks (SFBs) in India in terms of cost of funds, retail deposits and CASA deposits for fiscal 2023.

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 per cent as of fiscal 2023 among the SFBs.

Nuvama Wealth Management (formerly known as Edelweiss Securities), DAM Capital Advisors and Equirus Capital are the book running lead managers of the issue.

The equity shares are proposed to be listed on the BSE and National Stock Exchange of India (NSE).