Capital Small Finance Bank Shares Close 7.2% Lower Against IPO Price
On the National Stock Exchange, the shares closed at Rs 437 apiece, lower by 6.62% against the issue price of Rs 468 per share.
Shares of Capital Small Finance Bank Ltd. closed 7.2% lower than the offer price at Rs 434.30 per share on the BSE, and 0.16% lower than the opening price of Rs 435.
On the National Stock Exchange, the shares closed at Rs 437 apiece, lower by 6.62% against the issue price of Rs 468 per share. The stock was, however, 1.57% higher than the opening level of Rs 430.25 on the exchange.
"The capital we've raised is growth capital and will be part of our Tier-I capital," Chief Executive Officer Sarvjit Singh Samra told NDTV Profit.
"We will continue to expand in the secured lending franchise with retail deposit as our core source of funds. We are here to go more granular in the geographies we are," said Chief Financial Officer Munish Jain.
Since the IPO proceeds were acquired towards the end of the fiscal, "majority of growth in the bottom line will start to pour in by FY25", said Jain. The company is aiming for a medium-term CAGR of 30-35% in profit, driven by top line growth and increase in spreads, he said.
The Rs 523.07-crore IPO was subscribed 4.00 times on its third and final day. Bids were led by institutional investors (6.64 times), non-institutional investors (4.05 times), and retail investors (2.49 times).
Capital Small Finance Bank, which began operations in 2016 after converting itself from a local area bank, is 24% owned by the promoter family, led by Sarvjit Singh Sarma and his family. The bank offers fully secured loans to the micro, small and medium enterprises, mortgages and farmers in Punjab, Delhi, Haryana, Rajasthan, Himachal Pradesh and Chandigarh.
