- The stock listed at ₹435 below its issue price of ₹468 per share.
- Its market capitalization is at ₹1,959 crore, according to Bombay Stock Exchange.
Capital Small Finance Bank’s stock slipped 7% on its debut on Wednesday morning. The stock listed at ₹435 below of its issue price of ₹468. Its market capitalisation is at ₹1,959 crore, according to Bombay Stock Exchange.
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The ₹520 crore issue was subscribed four times over the shares on offer. It raised ₹157 crore from anchor investors like Nippon Life India, Edelweiss Tokio Life Insurance, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI General Insurance Company and more; ahead of opening the issue to the public.
Surprisingly, there were no indications from the grey market on this small finance bank’s listing gains.
The listing performance of 2024’s market debuts have been mixed due volatile market conditions. However, the last two listings like BLS E-Services and Nova Agritech have provided good gains to investors.
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Here are the listing gains of the last few market debuts
| Company | Listing gains |
| Apeejay Surrendra Parks | 31% |
| BLS E-Services | 129% |
| Nova Agritech | 39% |
| EPACK Durable | -10% |
| Jyoti CNC | 30% |
| Innova Captab | 21% |
The small finance bank has fixed the price band of the public issue at ₹445-468 per share. The issue is a combination of fresh issue of shares, and an offer for sale. Net proceeds from the fresh issue which amounts to ₹450 crore will be used to augment its tier-I capital base.
The Jalandhar based small finance bank was incorporated in 1999. With a range of banking products on the asset and liability side, it operates Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh and Union Territory of Chandigarh.
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“Our asset products primarily include agriculture loans, MSME and trading loans and mortgages. We focus primarily on the middle-income customer segments,” it said in its DRHP.
As of September 30, 2023, its gross advances stood at ₹5,865 crore, while total deposits were at ₹7,000 crore. Its gross non-performing assets (NPAs) stood at 1.36%, while its net interest margin was at 4.04%.
“Capital Small Finance Bank is a retail focused liability franchise with a high share of CASA. Their credit assessment processes, and risk management practices enable them to maintain good asset quality and low delinquencies. They have gained an understanding of their market and customer base over the years,” said an IPO note by Anand Rathi, which gives it a ‘subscribe-long term’ rating.
