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  1. Capital Small Finance Bank Limited IPO | Should you apply?

Capital Small Finance Bank Limited IPO | Should you apply?

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Upstox

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2 min read • Updated: February 6, 2024, 2:05 PM

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Summary

📈Hello everyone! Get ready for an exciting opportunity as Capital Small Finance Bank Limited's IPO opens for subscription from February 7th to 9th, 2024. Let's delve into the key details of this IPO and explore the company's business model.

To apply for this IPO on Upstox, click here - https://upstox.com/ipo-initial-public-offering/capital-small-finance-bank-ipo

📈Hello everyone! Get ready for an exciting opportunity as Capital Small Finance Bank Limited's IPO opens for subscription from February 7th to 9th, 2024. Let's delve into the key details of this IPO and explore the company's business model.

🏦 ** 1: Capital Small Finance Bank's Business** Established in 1999, Capital Small Finance Bank Limited offers banking products primarily in semi-urban and rural areas. These products include agriculture loans, MSME loans, trading loans, mortgages such as housing loans, and loans against property.

🎯 ** 2: Target Customers** The bank primarily targets the middle-income customer segment. As of September 30, 2023, 41% of its branches were in rural areas, 34% in semi-urban areas, and 23% in urban areas. With a customer-centric approach, the bank boasts over 7 lakh customers.

🏦 ** 3: Branch-Based Model** Capital Small Finance Bank operates on a branch-based model with 173 branches and 175 ATMs spread across 24 districts in states and UTs like Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and Chandigarh.

💰 ** 4: Financial Performance** Between FY21 and FY23, the bank witnessed a 17% CAGR in net interest income and nearly 32% CAGR in profit. As of September 30, 2023, the gross non-performing assets (NPAs) stood at 2.73% of total advances, with net NPAs at 1.36%. With small finance banks' loan portfolio expected to grow at a 22% to 24% CAGR between FY23 and FY25, Capital Small Finance Bank stands to benefit.

🎯 ** 5: Objective of the IPO** The IPO comprises an offer for sale and a fresh issue. The proceeds from the fresh issue will be allocated to bolster the bank's tier 1 capital base, expand its branch network, and enhance its lending business. The company's shares will be listed on both the NSE and the BSE.

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