Punjab: Capital Small Finance Bank to float IPO on Feb 7
Vijay C Roy
Chandigarh, February 2
The IPO of Punjab’s only small finance bank, Capital Small Finance Bank Ltd (Capital SFB), will hit the market on February 7. It is planning to raise over Rs 500 crore.
It will be the third small finance bank after ESAF Small Finance Bank and Utkarsh Small Finance Bank to get listed on the bourses post-Covid.
The IPO of Capital SFB includes a fresh share sale of Rs 450 crore. Existing investors, including Oman India Joint Investment Fund, Amicus Capital, Amicus Capital Partners India Fund and others will offload up to 15,61,329 equity shares from their stake. The lender is looking to raise Rs 523 crore at the upper end of the IPO price band.
Sarvjit Singh Samra, MD & CEO, Capital SFB, said, “The bank proposes to utilise the net proceeds from the fresh issue towards augmenting the bank’s tier – I capital base to meet its future capital requirements. As the bank continues to grow its loan portfolio and asset base, the bank expects to require additional capital in order to continue to meet applicable capital adequacy ratios with respect to its business. The bank intends to grow its loan advances which would require tier – I capital to comply with the applicable capital adequacy requirements. Further, the proceeds from the fresh Issue will also be used towards meeting the expenses in relation to the offer.”
Established in 2000, the Jalandhar- headquartered bank was the first local area bank to get small finance bank licence in 2015. Later, it changed its name from Capital Local Area Bank to Capital Small Finance Bank and commenced banking operations on April 24, 2016, becoming India’s first SFB.
The Capital SFB targets middle-income customer segments. It has expanded its SFB operations in Punjab, Haryana, Rajasthan, Himachal Pradesh, Delhi and Chandigarh. It had a total of 172 branches and 174 ATMs as of June 30, 2023.
The bank offers a range of loan products, including those for small and medium enterprises, agriculture, housing and other needs, primarily serving small borrowers.
