capital small finance bank Share Price

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Capital Small Finance Bank Unlisted Shares | Latest Share Price & Updates.

Buy

₹ IPO

Sell

₹ IPO

Fairly Valued

Company Overview

Capital Small Finance Bank share price has been a significant aspect of the company’s trajectory. Starting in 2016, Capital Small Finance Bank has managed to develop a high-quality banking business by pioneering business initiatives like the 24/7 banking. This Punjab-based bank started as Local Area bank in 1999 and has scaled its business to 159 branches and presence in 4 states of Punjab, Haryana, Rajasthan and Delhi. 

Currently, almost 75% of its branches serve rural and semi-urban areas doing total banking business of ₹ 8,984 crores (FY 2020-21). 

In November, 2021, CSF filed its draft red herring prospectus for IPO to issue fresh equity worth ₹ 450 crores and an offer for sale of up to 38.40 lakh equity shares by existing shareholders. Oman India Joint Venture Fund, HDFC life, ICICI Prudential, SIDBI, and PI Ventures are the marquee investors in the bank. 

Business Model

Being a Small Finance Bank, Capital Small Finance Bank is only permitted to accept deposits and lend advances in under-banked rural and semi-urban areas of the country. 

The bank offers complete banking solutions beyond basic credit and deposit needs to its customers, including NRE/NRO deposits, forex services, money transfer, safe deposit lockers, and fee-based products like life insurance, mutual fund and credit cards.

Advances

Being a small finance bank, the bank is required to lend at least 75% to priority sectors including agriculture, micro and small business, weaker sections, housing and education finance. As on 31-March-2021, the bank reported total advances of around ₹ 3,763 crores and 99% of the lending was secured against mortgaged assets.  

Of the total advances, 38% of the credit went to agri-related activities, 26% pertains to SME and trading business, while the rest of 36% were mortgage and personal segment loans. The credit-to-deposit ratio of the bank is reported to be 72% during fiscal 2021.

Deposits

As on 31-March-2021, the bank reported a total deposit of around ₹ 5,221 crores. Its healthy 40% CASA ratio gives its edge in profitability with an impressive net interest margin of 3.40 (2021). As on 31-March-2021, the average cost of funds for the bank was 5.83% 

NPA

Capital Small Finance Bank boasts lowest Gross NPA (2.08%) and net NPA (1.13%) figures, as reported in 2021, amongst all other small finance banks. 

Capital Adequacy

As on 31-March-2021, CSF had a tier-I capital ratio of 14.27% and tier-II capital ratio of 5.53%, taking the total capital adequacy ratio of the bank to 19.8%. This is sufficiently above the minimum CAR of 15% prescribed by RBI. 

Registered Address

The registered address of the bank is located at MIDAS Corporate Park, 3rd Floor, G.T. Road, Jalandhar, Punjab.

SymbolCapital Small Finance Bank Ltd.
Face Value (₹):10
ISIN:INE646H01017
Demat Status:NSDL & CDSL
Lot Size:50 Shares

Board of Directors:

NameDesignation
Mr.Madan Gopal SharmaChairman & Independent Director
Mr.Sarvjit Singh SamraManaging Director & CEO
Mr.Srinath SrinivasanNon-Executive Director
Mr.Mahesh ParasuramanNon-Executive Director
Mr.Rahul PriyardarshiNon-Executive Director
Mr.Dinesh GuptaNon-Executive Director
Mr.Navin Kumar MainiIndependent Director
Mr.Gurpreet Singh ChugIndependent Director
Mr.Harmesh KhannaIndependent Director

Key Business Highlights Helps to Dermine Capital Small Finance Bank Share Price 

  • Superior business growth with 24% topline & 28% bottom line CAGR during the last 3 years. 
  • At 5.8%, Capital SFB has the lowest cost of funds among all small finance banks.
  • 99% of Capital SFB advances are secured.
  • Lowest Gross NPA (2.08%) and Net NPA (1.13%) figures among all small finance banks.  

Ratio

RatioFY23FY22
Operating Margin13%64%
Net Profit Margin36%10%
Return on Equity 43%12%
Debt-Equity1.180.97
Dividend Payout2%5%

Note:- Dividend payout = Total Dividend/Net Income.

It indicates, how much % of its Net Income, the company is paying out as dividend to its Shareholders.

Financial Highlights

Particulars2021-222020-212022-23
Total Income (₹ Crores)632.4557.27725.48
PAT (₹ Crores)188.8640.78260.62
Diluted EPS18.2211.9827.21
Book Value per Share (₹)151.5132.93178.27
Equity (₹ Crores)515.78450.79610.61

Financial Charts

Shareholding Pattern

Peer Comparison

The comparable peers having business model almost similar to Capital Small Finance Bank are AU Small finance Bank, Equitas Small Finance Bank and Utkarsh Small Finance Bank.

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
Capital Small Finance Bank1455.7335.92%1.19%42.68%1.1815.622.38178.27
AU Small Finance Bank49,65017.40%7.39%15.40%6.8932.104.51165
Equitas Small Finance Bank9638.0026.40%10.60%31.40%6.697.882.3720.50

Media Updates

Capital Small Finance Bank filed its draft red herring prospectus with SEBI on Monday. The IPO comprises fresh issue of equity shares aggregating up to ₹450 crore and an offer for sale of up to 38.40 lakh equity shares from existing shareholders, including PI Ventures, Amicus Capital, and Oman India.

Read more: https://economictimes.indiatimes.com/markets/ipos/fpos/capital-small-finance-bank-files-ipo-papers/articleshow/87476080.cms

Private Placement of Capital – During the year, the Bank has issued and allotted 1,608,508 Equity Shares on June 25, 2019 and 3,717,966 Equity Shares on November 22, 2019 of Rs.10/- each at a premium of Rs.242/- (i.e. at the total issue price of Rs. 252/-) per Equity Share aggregating to Rs.134.23 crores on a private placement basis under preferential allotment.

Private Placement  Financial institutional investors i.e. Amicus Capital Private Equity I LLP, Amicus Capital Partners India Fund I, Pi Ventures LLP and Oman India Joint Investment Fund II.

Frequently Asked Questions 

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.

The procedure to buy the Capital Small Finance Bank unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. Once the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.

The Capital Small Finance Bank unlisted shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

 The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Capital Small Finance Bank, please visit the stock page on our website page: www.delistedstocks.incurrent-offerings/capital-small-finance-bank-ltd/

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your Capital Small Finance Bank unlisted shares. But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.  

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell Capital Small Finance Bank unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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