Discover the latest updates on Capital Small Finance Bank’s IPO subscription frenzy! Get insights into retail and institutional interest, pricing details, and the bank’s plans for utilizing IPO proceeds. Stay ahead of the curve with the latest news on Capital SFB’s journey towards listing on BSE and NSE.
Capital Small Finance Bank – Redefining Banking in India
Capital Small Finance Bank (SFB) is a banking institution in India that operates as a small finance bank. These types of banks are specifically designed to cater to the financial needs of underprivileged sections of society and small businesses. Capital SFB provides a variety of banking services, including savings accounts, loans, and other financial products, with a focus on promoting financial inclusion and economic development. A forward-thinking financial institution dedicated to serving the needs of individuals and businesses with a focus on innovation and customer satisfaction, Capital SFB offers a wide range of banking solutions tailored to meet the diverse needs of its customers.
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Capital Small Finance Bank Initial Public Offering (IPO) Buzz: Subscription Update
So, here’s the scoop: Capital Small Finance Bank’s Public Offer has kicked off with a bang, getting a 33 percent subscription within just the first day of bidding, up until 3:35 pm. Yep, you heard that right! People are showing quite the interest, with bids pouring in for 23.45 lakh equity shares, out of the total 78.23 lakh shares on offer.
What’s interesting is that the retail portion of the Public Offer seems to be stealing the show, with a whopping 57 percent subscription rate. Talk about retail power! On the other hand, the Non-Institutional Investors (NII) category is trailing a bit behind, with an 18 percent bidding rate. As for the big players, the Qualified Institutional Buyers (QIB) are yet to make their moves.
IPO Details: Pricing, Share Structure, and Application Process
Now, let’s talk numbers. Capital SFB is making waves with its IPO worth ₹523.07 crore. The subscription window opened on February 7 and will be open for bids until February 9. And get this: the price band for the IPO is set between ₹445 to ₹468 per share. That’s quite the range!
Now, let’s dive into the nitty-gritty of the IPO. It consists of a fresh issue of 96 lakh shares, totaling ₹450.00 crore, along with an offer for sale of 16 crore shares, amounting to ₹73.07 crore. If you’re looking to get in on the action, the minimum lot size for application is 32 shares, and you can apply in multiples of that. For retail investors, the minimum investment required is ₹14,976 to join the offering.
Grey Market Buzz: What the Premium Indicates
But wait, there’s more! The buzz in the grey market is that the company’s shares are trading at a premium of ₹43. That’s got folks estimating a listing price of ₹511, a neat 9.19 percent increase from the IPO price of ₹468. The Grey Market Premium (GMP) held steady from the previous session, but it did dip a bit from ₹47 on February 5 and ₹50 on February 4.
But hey, let’s not get too carried away with the grey market hype. It’s important to remember that this is just an indication of how the company’s shares are doing in the unlisted market, and things can change in the blink of an eye.
Utilization of IPO Proceeds: Enhancing Capital Base and Covering Expenses
So, what’s Capital SFB planning to do with all that moolah? Well, they’ve got big plans! The bank aims to bolster its Tier-I capital base to meet future capital requirements, using the net proceeds from the fresh issue. Additionally, funds will also be allocated to cover expenses related to the offer.
Exciting times ahead! The allotment for the Capital SFB IPO is slated to be finalized on Monday, February 12, 2024. Mark your calendars because Capital SFB IPO is set to make its grand debut on both BSE and NSE, with a tentative listing date of Wednesday, February 14, 2024.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, NSE, and Capital SFB have contributed to the above report