About Company’s Business:
Regulated by the Reserve Bank of India (RBI), the entity initiated its operations as India’s inaugural small finance bank in 2016 following the approval from RBI on March 4, 2016. The institution provides a diverse range of banking products on both the asset and liability fronts across the states of Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh. Asset products primarily consist of agriculture loans, MSME and trading loans, and mortgages. With a primary focus on the middle-income customer segments, the bank has a predominant presence in Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and the Union Territory of Chandigarh. With an inception in 1999, the bank boasts over two decades of experience in the banking industry. As of the current Red Herring Prospectus date, the bank does not have any subsidiaries.
About the Industry:
Despite the government’s efforts to increase financial inclusion in India, a notable percentage of the population still lacks access to financial services. The establishment of small finance banks aimed to promote financial inclusion by providing savings options and extending credit to small business units, small and marginal farmers, micro and small industries, and other entities in the unorganized sector through technologically advanced and cost-effective operations. In line with the objective of fostering competition and improving the accessibility of financial services, the Reserve Bank of India (RBI) introduced various guidelines. These include the ‘Guidelines for Licensing of Payment Banks’ in November 2014, the ‘Operating Guidelines for Payment Banks’ in October 2016, and the ‘Guidelines for ‘on-tap’ Licensing of Small Finance Banks in the Private Sector’ in December 2019. As of July 2021, the RBI had granted small finance bank licenses to 12 institutions
Key Financial Information (₹ in million):
| Particulars | As at and for the six months ended September 30, 2023 | As at and for the six months ended September 30, 2022 | As at and for the Financial Year ended March 31, 2023 | As at and for the Financial Year ended March 31, 2022 | As at and for the Financial Year ended March 31, 2021 |
|---|---|---|---|---|---|
| Capital | 353.51 | 342.52 | 342.52 | 340.44 | 339.10 |
| Net worth | 7,117.58 | 5,565.12 | 6,106.10 | 5,157.81 | 4,507.90 |
| Total income | 4,152.16 | 3,428.08 | 7,254.82 | 6,324.03 | 5,572.73 |
| Profit after tax | 543.91 | 410.92 | 935.96 | 625.69 | 407.84 |
| Earnings per share (Basic) | 15.59 | 12.02 | 27.35 | 18.41 | 12.04 |
| Earnigns per share (Diluted) | 15.49 | 11.97* | 27.21 | 18.22 | 11.98 |
| Net asset value per Equity Share (basic) | 201.34 | 162.47 | 178.27 | 151.50 | 132.93 |
| Net asset value per Equity Share (diluted) | 199.71 | 161.58 | 177.19 | 150.54 | 132.46 |
| Total borrowings (as per balance sheet) | 5,727.60 | 7,832.98 | 7,213.83 | 4,984.30 | 6,167.20 |
| EBITDA | 806.92 | 664.30 | 1,448.23 | 1,006.05 | 702.29 |
Objective of the Issue:
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For augmentation of our Bank’s Tier – 1 capital base
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Net Proceeds.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Wednesday, February 7, 2024 |
| Close Date | Friday, February 9, 2024 |
| Issue Size | ₹523.07 Crores |
| Price | ₹445 to ₹468 per share |
| Lot Size | 32 Shares |
| Basis of Allotment | Monday, February 12, 2024 |
| Initiation of Refunds | Tuesday, February 13, 2024 |
| Credit of Shares to Demat | Tuesday, February 13, 2024 |
| Listing Date | Wednesday, February 14, 2024 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
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