The company is a Jalandhar-based firm that began operations as India’s first small finance bank (SFB) in April 2016 after conversion from Capital Local Area Bank. It aims to build a retail-focused banking franchise by enabling access for middle-income group customers to affordable credit in the states Bank operates. Its banking portfolio offers a diverse range of asset and liability products and various third-party products/services as well. It caters to agricultural needs, micro, small, and medium-sized enterprises (MSMEs), and trading requirements, including working capital and machinery financing. The bank also provides mortgages, predominantly for housing loans.
At 5:30 PM, the total subscription of the issue was 4 times as against 81.47 lakh shares. Qualified Institutional Buyers (QIBs) subscribed 6.64 times to 23.10 lakh shares. Non-Institutional Investors (NIIs) subscribed 4.05 times, equivalent to 70.90 lakh shares, compared to the 17.51 lakh shares available. The retail portion was subscribed 2.49 times against 40.85 lakh shares.
The company has fixed the IPO price band in the range of Rs 445-465.
The offering comprises a blend of a new issuance of 9.6 million shares totaling Rs 450 crore and a sale offer of 160 million shares amounting to Rs 73.07 crore. The smallest application size is 32 shares, and investors can apply in multiples of this quantity. For retail investors, the minimum required investment is Rs 14,976.
3-months ended June 30, 2023 (Rs million)
Financial Year ended March 31, 2023 (Rs million)
Profit after tax
Objectives of the Issue
The bank intends to use the net proceeds from the new issuance to strengthen the Tier-I capital base, addressing future capital requirements. The company will apply the funds generated from the fresh issue to cover expenses related to the offer.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
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