Capital Small Finance Bank Limited is set to launch its Initial Public Offering (IPO) worth Rs 523 crore today. The bank has outlined plans to utilize the proceeds from the fresh issue to bolster its tier-I capital base, ensuring readiness to meet future capital requirements.
Anchor Investor Investments
Before the IPO’s launch, Capital Small Finance Bank Limited secured Rs 156.92 crore from 19 anchor investors, with shares priced at the upper band of Rs 468 per equity share. The bank allotted 33,53,013 Equity Shares to these anchor investors, marking a significant step in the run-up to its public offering.
Key Details of the IPO
Here are essential details prospective investors need to know about the Capital Small Finance Bank Limited IPO:
- Price Band: The IPO offers shares in the price band of Rs 445 to Rs 468 per share.
- Allocation: The bank has allocated 33,53,013 Equity Shares at the upper price band of Rs 468 per Equity Share, each with a face value of Rs 10.
- Bid Quantity: The minimum bid quantity stands at 32 shares, with multiples of 32 shares thereafter.
- Anchor Investor Participation: Out of the total allocation to anchor investors, which amounted to 3,353,013 Equity Shares, domestic mutual funds acquired 1,602,592 Equity Shares, representing 47.80% of the total allocation to anchor investors. These acquisitions were made across 8 schemes.
Lead Managers
Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), DAM Capital Advisors Limited, and Equirus Capital Private Limited serve as the Book Running Lead Managers for the IPO, underscoring the bank’s strategic approach to managing its public offering.
Conclusion
The Capital Small Finance Bank Limited IPO marks a significant milestone for the bank as it ventures into the public markets to raise capital for future expansion and development. With a focus on strengthening its tier-I capital base, the bank aims to fortify its position in the financial sector and cater to evolving market demands. As the IPO opens for subscription, investors have the opportunity to participate in the growth journey of Capital Small Finance Bank Limited, backed by its robust business fundamentals and strategic vision.
-Prisha Jaiswal