Capital Small Finance Bank has submitted DRHP to SEBI for an IPO. The bank intends to raise funds through the issuance of equity shares, totaling up to ₹450 crore, along with an offer for sale of up to 2.4 million shares.
The offer for sale includes up to 836,728 shares by Oman India Joint Investment Fund II, up to 337,396 shares by PI Ventures, up to 604,614 shares by Amicus Capital Private Equity I, up to 70,178 equity shares by Amicus Capital Partners India Fund I, and up to 563,769 equity shares by certain other individuals.
The bank plans to utilize the net proceeds from the fresh issue to bolster its tier-I capital base, meeting future capital requirements and covering offer-related expenses. Nuvama Wealth Management, DAM Capital Advisors, and Equirus Capital Private Limited will serve as the book running lead managers for the IPO.
The shares offered through the red herring prospectus are slated for listing on the BSE and the National Stock Exchange of India. Established in 2016, the bank primarily consists of secured loans, representing 99.8% of its loan book in 2022-23.
Gross advances for the bank increased from ₹4,689 crore to ₹5,507 crore as of March 31, with net profit rising from ₹62.6 crore in the previous year to ₹93.6 crore in 2022-23.
Several private equity firms that invested in the small finance bank back in 2015 are now considering exit strategies through the forthcoming IPO.