Dar Credit and Capital, listed at ₹65.15 price with a premium of 8.58%

Dar Credit and Capital Limited is a fast-growing non-banking financial company situated in Kolkata. Dar Credit's IPO was listed and open on the NSE SME Platform from May 21 to May 23, 2025. That means Dar Credit offers services such as unsecured, secured, and personal loans to MSMEs.

The main constituency in this credit scheme has been targeted at lower-income groups, small entrepreneurs, and women entrepreneurs. Dar Credit operates in six states across India, primarily providing easy credit to people living in financially backwards areas and thereby enabling financial inclusion.

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Dar Credit and Capital IPO Listing Details

The IPO price band for Dar Credit and Capital Limited was set between ₹57 to ₹60 per share, with a minimum lot size of 2,000 shares. This required a minimum investment of ₹1,20,000 for retail investors. Due to expectations of strong demand and potential oversubscription, investors were advised to bid at the cutoff price.

Listing Price: The Dar Credit and Capital IPO share price is listed on the NSE SME platform on May 28, 2025, at ₹65.15 per share. The estimated market capitalisation at listing stood at ₹85.66 crore.

Investor Sentiment: Backed by steady revenue growth, a focus on financial inclusion, and a net profit of ₹4.92 crore as of December 31, 2024, the IPO received strong interest from retail and HNI investors.

First-Day Trading Performance Outlook

Dar Credit and Capital Limited was listed on the NSE SME platform at ₹65.15 per share. The stock was actively traded on the first day, drawing attention from both retail and HNI investors. The overall response on the listing day was steady, reflecting general investor interest in the company. The listing marks an important step for the company as it enters the public market and begins its journey as a listed entity on the NSE SME platform.

Market Sentiment and Analysis

Dar Credit and Capital Limited, started in 1994, gives personal and MSME loans to low-income people and small businesses. Its focused approach and growing profits have attracted investor interest.

Investor Response: The IPO was subscribed 1.93 times overall, with the retail portion subscribed 3.34 times and the HNI portion 1.21 times, reflecting strong demand. Investors were drawn by the company’s steady performance and focus on financial inclusion.

Growth Highlights: Revenue increased from ₹25.57 crore in FY23 to ₹33.01 crore in FY24, while net profit rose from ₹2.93 crore to ₹4.92 crore by December 2024, showing steady business growth.
 

Growth Drivers and Challenges

Dar Credit and Capital Limited has grown steadily in recent years with its focused lending and wider reach. Like other NBFCs, it also faces some challenges that may affect its future. Here are the main growth drivers and challenges.

Growth Drivers:

• Focused Lending: Targets underserved groups like municipal workers, vendors, and women entrepreneurs.
• Wide Reach: Active in 64 districts across six states, expanding customer base.
• Tech-Enabled: Uses technology for faster credit checks and loan processing.
• Profit Growth: Net profit rose from ₹2.93 crore (FY23) to ₹4.92 crore (Dec 2024)

Challenges:

• High Debt: A debt-to-equity ratio of 2.51 may affect financial stability.
• Competitive Sector: Works in a crowded NBFC market with many similar players.
• Unsecured Loans: A Large share of unsecured loans increases the chance of defaults.
• Low Returns: Return ratios like ROE and RoNW are lower than the industry average

Utilisation of IPO Proceeds

Dar Credit and Capital Limited will use the IPO funds to strengthen its finances and support future growth. The money will help increase lending and meet business needs. Here is how the funds will be used:

• Increase Capital: ₹22 crore will be used to strengthen the company’s capital base for future lending.
• Business Needs: Some funds will support expansion, new branches, and daily operations.
• IPO Costs: A part will cover IPO expenses like listing fees and legal charges.

Financial Performance of Accretion Pharmaceuticals

Dar Credit and Capital Limited has been showing steady financial growth over the past few years. Income has increased, profit has increased, and the balance sheet has gotten stronger. Some of the key parameters are discussed here:

• Revenue Increase: The total income grew from ₹25.57 crore in FY23 to ₹33.01 crore in FY24, depicting a healthy increase in business activity.
• Profitability Rebound:  Net profit increased from ₹2.93 crore in FY23 to ₹4.92 crore as of December 31, 2024, showing enhanced efficiency and better loan servicing.
• Net Worth Strengthens:  Net worth increased from ₹61.78 crore in FY23 to ₹69.67 crore by December 2024, being supported by retained earnings.

Dar Credit and Capital Limited has been able to make a steady start in the listing on the SME platform of NSE. The company attempts growth by narrowly focused lending and broadening its reach. While there remain threats from competition and unsecured loans, the strong base of customers and improving financials must make this company an entity to watch in the NBFC space. In the presence of good risk management and further growth, it stands a good chance of scaling up in the coming years.