Analysis of Capital Small Finance Bank Ltd. IPO

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Important IPO Details of Oman India-backed Capital Small Finance Bank to launch Rs 523-crore IPO

Capital Small Finance Bank Ltd. IPO as disclosed in SEBI.

Important Points

Issue Size₹ 523.07 Cr
Face Value₹ 10
Total Shares Offered11,176,714
Offered To Public3,911,850
Retail Max (Shares/Amount)416/₹194,688
PRICE BAND ₹ 445 – 468 ₹ 445 – 468
OPEN 2024-02-07
ISSUE TYPE Book Built
Listing Date 14 Feb, 2024


Minimum Investment
14,976.00
Pre Issue Promoters Holding
SectorFinancial Services
Sub Sector
Issue TypePublic Cum Offer for Sale (Book Building)

Quick Review

  • CSFB is focussed in northern region for financial offering
  • Good Growth in both TopLine and Bottam Line
  • IPO is priced in very aggresive range based on F24 Earning 22
  • Based on FY24 annualized earnings, the IPO looks very aggressively priced.That has been the trend for most of the IPOs of 2023
  • Suitable for Long Term Investment

CSFB has its business operations in Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh and Chandigarh. total of 173 branches and 175 ATMs majority of its branches located in rural Areas and other Backward areas which includes

  1. 24 districts
  2. 75.75% of total customers
  3. 5 State 1 UT

FINANCIAL PERFORMANCE


FY 21 Total income/net profit of Rs. 557.27 cr. net profit Rs. 40.78 cr

FY22 Rs. 632.40 cr. / Rs. 62.57 cr.

FY23 Rs. 725.48 cr. / Rs. 93.60 cr.

DIVIDEND POLICY

FY21 : 8%

FY22 : 10%

FY23 : 12%


Capital Small Finance Bank Limited IPO Market Lot

Applicant can apply for a minimum 1 lot of 32 shares

Max 13 lots

APPLICATIONLOTSHARESAMOUNT
 Minimum 13214,976
 Maximum134161,94,688

Strengths Weakness:

  • CASA has risen for Capital Small Finance Bank 40%
  • highest secured loan book (around 99.39%).
  • diversified portfolio to mid customer segments

Weakness:

  • Keeping CRR SLR set by RBI is must to operate as Bank
  • Risk of NPA
  • Mostly in North India
  • Regulatory Compliance

Financials

ParticularsFY21FY20FY19
Revenue From Operation3,185.852,768.192,317.57
EBITDA702.29499.19386.90
EBITDA Margin (%)
Profit1395.561091.49925.70
EPS11.988.166.82
ROE9.517.728.02

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