Capital Small Finance Bank and CJ Darcl Logistics have filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking a move towards their respective initial public offerings (IPOs).
On Friday, Capital Small Finance Bank announced its plans to raise funds through an IPO by issuing equity shares with a face value of ₹10 each. The IPO will consist of a fresh issue of equity shares priced at ₹450 and an offer for sale (OFS) of up to 2,412,685 equity shares. The OFS includes equity shares from the Oman India Joint Investment Fund II, PI Ventures LLP, Amicus (NASDAQ:FOLD) Capital Private Equity I LLP, Amicus Capital Partners India Fund I, and other parties listed in the DRHP. Equirus Capital Private Ltd, DAM Capital Advisors Ltd, and Nuvama Wealth Management Ltd are acting as the issue's book-running lead managers.
The bank intends to use the net proceeds from the fresh issue to increase its Tier-I capital base and cover the costs associated with the offer. The proposed equity shares will be listed on the BSE and NSE.
According to InvestingPro data, Capital Small Finance Bank's market cap is 177.41M USD with a P/E ratio of 13.07, reflecting a relatively low valuation compared to its earnings. The bank has consistently increased its earnings per share, a positive sign for potential investors. This is in line with InvestingPro Tips, which highlights the bank's strong return over the last year and predicts that the company will be profitable this year.
CJ Darcl Logistics Ltd, a diversified logistics company in India, also revealed its intentions to raise funds through an IPO on Friday. The company's offer consists of a fresh equity share issue worth up to ₹340 crore and a selling shareholder's offer to sell up to 5,431,071 equity shares. Krishan Kumar Agarwal, Roshan Lal Agarwal, Narender Kumar Agarwal, Vineet Agarwal, Sushma Agarwal, Puneet Agarwal, Samiha Agarwal, Nitesh Agarwal, Darshan Kumar & Sons(HUF) and Tek Chand Agarwal (HUF) are among those listed in the OFS.
The company plans to use the net proceeds from the fresh issuance for repayment or payback of some outstanding borrowings, financing capital expenditure requirements towards the purchase of EVs, and general corporate objectives. ICICI Securities Ltd, Axis Capital (NYSE:AXS) Ltd, and Mirae Asset Capital Markets (India) Private Ltd are acting as the issue's book-running lead managers. The proposed equity shares will be listed on the BSE and NSE.
Capital Small Finance Bank first commenced operations as India’s inaugural small finance bank in 2016. It has since built a diversified portfolio with a sizeable book in multiple asset classes, securing a lending proportion of 99.82 percent as of FY23 among the SFBs. The bank plans to use the IPO's net proceeds to augment its Tier-I capital base to meet future capital requirements. For more insights like these, investors can check out InvestingPro, which provides additional tips and real-time metrics.
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