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This article is more than 2 month old.

Capital Small Finance Bank files DRHP for IPO

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The IPO comprises a fresh issue of up to Rs 450 crore and an offer for sale of 3.8 million shares by existing shareholders and promoters.

Capital Small Finance Bank files DRHP for IPO
Capital Small Finance Bank has filed a draft red herring prospectus (DRHP) with the market regulator Securities Exchange Board of India for an initial public offering (IPO).
The IPO comprises a fresh issue of up to Rs 450 crore and an offer for sale of 3.8 million shares by existing shareholders and promoters.
The bank proposes to utilise the net proceeds from the fresh issue to meet its future capital requirements and also towards meeting the expenses in relation to the offer. As of June 30, 2021, the bank's tier-I capital base was Rs 446.2 crore, as per the DRHP.
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The bank's core strategy is to build a robust retail-focused banking franchise by enabling access to affordable credit in the states it operates with special emphasis on rural and semi-urban areas. Its focus is primarily on the middle-income customer segments.
Capital Small Finance Bank offers a range of banking products on the asset and liability side, and its asset products primarily include agriculture loans, MSME and trading loans like working capital, machinery loans, and mortgages.
As of June 30, 2021, the lender’s total loan book was Rs 36,808.49 million which comprised primarily of agriculture loans constituting 36.88 percent, MSME and trading loans constituting 26.08 percent and mortgage loans constituting 22.66 percent of our loan book which accounted for 85.62 percent of the total loan book as of June 30, 2021, as per the DRHP.
Talking about the asset quality, as of June 30, 2021 and March 31, 2021, the bank’s gross NPAs were Rs 912.43 million and Rs 782.43 million which accounted for 2.48 percent and 2.08 percent of its advances.
The lender’s net non-performing assets during the same periods were Rs 525.89 million and Rs 421.42 million which accounted for 1.44 percent and 1.13 percent of its advances respectively.
Edelweiss Financial Services, Axis Capital and SBI Capital Markets are the lead managers to the issue.
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