Capital Small Finance Bank Secures Rs 157 Crore from Anchor Investors

Capital Small Finance Bank, based in Jalandhar, has successfully raised Rs 157 crore from anchor investors on the eve of its initial public offering (IPO). The bank allotted 33.53 lakh equity shares to 19 funds at a price of Rs 468 per share, which is the upper limit of the price band, as per a circular uploaded on the BSE website.

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Anchor Investors

Among the notable participants in the anchor round were Whiteoak Capital Fund, LC Pharos Multi Strategy Fund, Nippon Life India Trustee Ltd, 360 One Fund, Edelweiss Tokio Life Insurance Company, HDFC Life Insurance Company, and ICICI Prudential Life Insurance Company.

IPO Details

Capital Small Finance Bank's IPO, valued at Rs 523 crore, comprises a fresh issue of Rs 450 crore and an Offer For Sale (OFS) of Rs 73 crore. Through the OFS, promoters and external investors will divest 5% of their pre-issue holdings.

Offer For Sale (OFS)

Entities selling shares in the OFS include Oman India Joint Investment Fund II, American Capital, and Amicus Capital Private Equity.

Public Subscription

The bank's maiden public issue, with a price band of Rs 445-468 per share, will be open for public subscription from February 7 to 9, 2023.

Utilization of Proceeds

Capital Small Finance Bank intends to utilize the proceeds from the fresh issue to augment its tier-I capital base and meet its future capital requirements.

Background of the Bank

Capital Small Finance Bank commenced operations in 2016 after transitioning from a local area bank. The promoter family, led by Sarvjit Singh Sarma and his family, holds a 24% stake in the bank.