Capital Small Finance Bank had a lackluster debut on the stock exchanges, opening at an 8.1 percent discount to its IPO price on February 14. The stock commenced trading at Rs. 430 on the NSE and Rs. 435 on the BSE, compared to the issue price of Rs. 468.
Prior to its listing, the stock’s grey market premium (GMP) vanished as it traded at an 8 percent premium when the IPO offer opened on February 7. The grey market, an unofficial platform where stocks are traded before IPO allotment, is typically observed to gauge potential listing prices. The IPO, valued at Rs. 523.07 crore, garnered a subscription of 4.17 times between February 7 and February 9.
The IPO consisted of a fresh issue of 96.15 lakh shares, amounting to Rs. 450 crore, along with an offer-for-sale of 15.61 lakh shares valued at Rs. 73.07 crore. The price range for the IPO was set at Rs. 445-468 per share. Selling shareholders in the offer-for-sale include investors Oman India Joint Investment Fund II and Amicus Capital.
Operating primarily in Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh, the small finance bank intends to utilize the net proceeds from the fresh issue primarily to bolster its Tier–I capital base, addressing future capital requirements.
Specializing in lending across three main segments – agriculture, MSME (Micro, Small, and Medium Enterprises), trading (including working capital and machinery loans), and mortgages (covering housing loans and loans against property) – the bank aims to cater to diverse financial needs.
