Capital Small Finance Bank has filed a draft red herring prospectus (DRHP) with Securities and Exchange Bank of India (Sebi) for an initial public offering (IPO).
The bank plans to raise funds by issuing equity shares aggregating up to `450 crore and an offer for sale of up to 2.4 million shares.
The offer for sale comprises of 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 persons.
The bank proposes to utilise the net proceeds from the fresh issue towards augmenting bank’s tier – I capital base to meet bank’s future capital requirements.
Further, the proceeds from the fresh issue will also be used towards meeting the expenses in relation to the offer.
Nuvama Wealth Management, DAM Capital Advisors, and Equirus Capital Private Limited are the book running lead managers in the issue.
The shares will be offered through the red herring prospectus are proposed to be listed on BSE and National Stock Exchange of India.
The bank commenced operations in 2016. Secured loans comprised 99.8% of the loan book as of 2022-23 (April-March).
Gross advances rose to Rs 5,507 crore as on March 31 from Rs 4689 crore a year ago. The net profit rose to Rs 93.6 crore in 2022-23 (April-March) from Rs 62.6 crore a year ago.
Various private equity firms, that had bought into the small finance bank story in 2015, are looking at listing exits.
In July, Varanasi-based Utkarsh Small Finance Bank had raised Rs 500 crore through a public offering.