Capital Small Finance Bank IPO Allotment Status

Capital Small Finance Bank IPO Allotment Status
Capital Small Finance Bank IPO Allotment Status

by Tanushree Jaiswal Last Updated: Feb 12, 2024 - 09:19 am 267 Views
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Capital Small Finance Bank Ltd IPO Structure

The stock of Capital Small Finance Bank Ltd has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹445 to ₹468 per share. The IPO of Capital Small Finance Bank Ltd will be a combination of a fresh issue of shares and offer for sale (OFS). While fresh issue infuses fresh funds into the company, it is also EPS and equity dilutive. On the other hand, OFS is just a transfer of ownership. The fresh issue portion of the IPO of Capital Small Finance Bank Ltd comprises the issue of 96,15,384 shares (96.15 lakh shares approximately), which at the upper price band of ₹468 per share will translate into a fresh issue size of ₹450.00 crore. 

The offer for sale (OFS) portion of the IPO of Capital Small Finance Bank Ltd comprises the sale of 15,61,329 shares (15.61 lakh shares approximately), which at the upper price band of ₹468 per share will translate into an OFS size of ₹73.07 crore. The OFS size of ₹15.61 lakh shares will be entirely offered by investor shareholders. Among the investor shareholders offering shares in the OFS are Oman India Joint Investment Fund II (8.37 lakh shares), Amicus Capital Private Equity LLP (1.51 lakh shares), Amicus Capital Partners India (0.17 lakhs hares) and others (5.56 lakhs shares). Thus, the total IPO of Capital Small Finance Bank Ltd will comprise of a fresh issue and an OFS of 1,11,76,713 shares (111.77 lakh shares approximately) which at the upper end of the price band of ₹468 per share aggregates to total issue size of ₹523.07 crore. 

The IPO of Capital Small Finance Bank Ltd will be listed on the NSE and the BSE on the IPO mainboard. The fresh funds will be used to shore up its capital base, which is a basic necessity for small finance banks to be able to expand their loan books to be compliant with capital adequacy regulations. Promoters currently hold just 24.01% in the company, which will get diluted post the IPO to 18.88%. The IPO will be lead managed by Nuvama Wealth Management, DAM Capital Advisors (formerly IDFC Securities), and Equirus Capital. Link Intime India Private Ltd will be the registrar to the IPO.

Subscription update for Capital Small Finance Bank Ltd IPO

The IPO of Capital Small Finance Bank Ltd  was overall subscribed 4.00 times, with the maximum subscription coming from the QIB portion, which got subscribed 6.64 times. While the HNI / NII segment got subscribed at a healthy clip of 4.05 times, the retail portion also got subscribed at a relatively healthy clip of 2.49 times. There was no employee quota in the IOP of Capital Small Finance Bank Ltd. Most of the QIB subscriptions came in on last day of IPO, which is the norm. The IPO was open for a period of 3 days in total from February 07th, 2024 to February 09th, 2024.

When will the basis of allotment be finalized?

The first step for checking the allotment status of the IPO online is the completion of the basis of allotment of Capital Small Finance Bank Ltd . The basis of allotment will be finalized late on 12th February 2024. The refunds will be initiated by the company on 13th February 2024. The demat credits are expected to also happen on 13th February 2024 while the listing of the stock on the NSE and the BSE will happen on 14th February 2024. In between there is a weekend and a holiday so the allotment status gets delayed by a couple of days.

However, it looks like the companies are keen to adhere to the new SEBI norm of T+3 listing. That was voluntary till the end of November but has become mandatory as of the start of December 2023, so IPO issuers are now fully prepared for the new system. The adherence has been much more robust among the SME IPOs, and now mainboard IPOs are catching on.

If you have applied for the IPO, you can check your allotment status online.  You can either check your allotment status on the BSE website or the IPO registrar, Link Intime India Private Limited. Here are the steps.

Checking the allotment status on BSE website

This is a facility available to all mainboard IPOs, irrespective of who the registrar to the issue is. You can still access the allotment status on the website of BSE India as under. Visit the BSE link for the IPO allotment by clicking on the link below. 

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.
    • Under Issue Type – Select Equity Option
    • Under Issue Name – Select Capital Small Finance Bank Ltd  from the drop down box
    • Enter the Application Number exactly as in the acknowledgement slip
    • Enter the PAN (10-digit alphanumeric) number
    • Once this is done, you need to click on the Captcha to verify that you are not a robot
    • Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters.

The allotment status will be displayed on the screen in front of you informing about the number of shares of Capital Small Finance Bank Ltd  allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits on or after 13th February 2024. The stock of Capital Small Finance Bank Ltd will appear in the demat account (if allotted) under ISIN Number (INE646H01017).

Checking the allotment status on Link Intime India Private Limited (Registrar to the IPO)

Here are the steps to follow. Visit the Link Intime registrar website for IPO status by clicking on the link below:

https://linkintime.co.in/IPO/public-issues.html

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there also a way to access this page via the home page of Link Intime India Private Ltd by clicking on the Public Issues link displayed prominently on the home page. It all works the same.
This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Capital Small Finance Bank Ltd  from the drop-down box. In the case of Capital Small Finance Bank Ltd, data access will be allowed late on 12th February 2024 or by middle of 13th February 2024.   

• There are 4 options available to you and you will find these 4 options on the above access page itself. You can either access the allotment status based on PAN or Application Number or DPID / Client ID combination or based on the combination of the bank account / IFSC code used to apply for the IPO. You can select any one of the options that is preferred and provide the details accordingly.

• If you opt for the PAN Number access, then enter the 10 character income tax permanent account number (PAN). This is an alphanumeric code available either on your PAN card or on top of your income tax return.

 • The second option is to use the Application Number that you used while making an application for the IPO. The application number is available on the acknowledgement provided to you and you can use that as one of the options to access allotment status.

 • The third option is to use the DPID-Client ID combination. Remember that here you have to enter the DP id and the demat client id together as one single string. This DPID / Client ID combination is a numeric figure for CDSL demat accounts while it is an alphanumeric string for NSDL demat accounts. This combination of DP ID / Client ID of your demat account will be available in your demat statement or you can also get it online from your online trading account or trading app downloaded on the smart phone.

 • The fourth option is to query based on the combination of your bank account number and IFSC number and irrespective of how many bank accounts you have, only use the bank account used for this particular IPO application. Once you click on this option, you find two boxes. First, enter your bank account number as it is. Secondly, enter the 11-character IFSC code, which is available on your cheque book. The first 4 characters of the IFSC code are alphabets and the last 7 characters are numeric. IFSC is an abbreviation for Indian Financial System Code and is unique to each account.

 • Finally, click on the Search button

The IPO status with number of shares of Capital Small Finance Bank Ltd  allotted will be displayed on the screen in front of you. You can take a screenshot of the output page for your records. The same can be verified with the demat account on 13th February 2024 or after that. The stock is expected to list on 14th February 2024. The only question now is, what determines chances of allocation in the IPO? It boils down to allocation quota and subscription levels.

Allocation Quota and Subscription Levels 

The table below captures the quota allocated to various categories, in terms of the number of shares and also the percentage of the total share capital raised. For investors it is the quota for the retail and the HNI that really matters.

Category of Investors Allocation of shares under IPO
Reservation for Employees No reservation for employees
Anchor Allocation 33,53,013 shares (30%)
QIB Shares Offered 22,35,343 shares (20%)
NII (HNI) Shares Offered 16,76,507 shares (15%)
Retail Shares Offered 39,11,850 shares (50%)
Total Shares Offered 1,11,76,713 shares (100.00%)

The next thing to look at is the extent of subscription. The table below captures the extent of oversubscription for each of the categories as well as the overall subscription for Capital Small Finance Bank Ltd.

Category Subscription Status
Qualified Institutional Buyers (QIB) 6.44 Times
S (HNI) ₹2 lakhs to ₹10 lakhs 5.20
B (HNI) Above ₹10 lakhs 3.48
Non Institutional Investors (NII) 4.05 Times
Retail Individuals 2.49 Times
Employees Not Applicable
Overall Subscription 4.00 times

Data Source: BSE

The response to the IPO of Capital Small Finance Bank Ltd  was tepid overall, and it was also quite tepid for the retail portion and the HNI portions. The retail subscription of 2.49 times gives a rather good opportunity of allotment in the IPO. However, the investors can also be hopeful since the SEBI norms on retail IPO allotment is to allot the basic lot size to as many unique investors as possible. The same can be checked using the allotment checking modus operandi explained above. You just need to wait for the basis of allotment to be finalized on 12th February 2024, before arriving at any conclusions. The stock of Capital Small Finance Bank Ltd will appear in the demat account (if allotted) under ISIN Number (INE646H01017).

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

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