About Company’s Business:
They are a small finance bank based in Kerala, with a specific focus on serving the unbanked and under-banked customer segments, particularly in rural and semi-urban areas. Their primary product offerings encompass advances and deposits, which include current accounts, savings accounts, term deposits, and recurring deposits. Their advances can be categorized into: (a) micro loans, including microfinance loans adhering to the RBI Regulatory Framework for Microfinance Loans Direction, 2022, as well as other micro loans; (b) retail loans, such as gold loans, mortgages, personal loans, and vehicle loans; (c) loans targeting micro, small, and medium enterprises (MSMEs); (d) loans to financial institutions; and (e) agricultural loans.
About the Industry:
Small finance banks have a mission to cater to underserved individuals and communities by offering savings options and extending credit to small businesses, small-scale farmers, micro and small industries, and other unorganized sectors, often through informal channels. The 12 small finance banks, which include the mentioned institution, collectively represented around 13% of the total Asset Under Management (AUM) in the industry as of June 30, 2023. The AUM for advances in small finance banks experienced a notable 29% Compound Annual Growth Rate (CAGR) from March 31, 2018, to June 30, 2023, and CRISIL MI&A anticipates that this growth will continue, with a projected CAGR of 22-24% between June 30, 2023, and March 31, 2025, as per the CRISIL MI&A Report.
Key Financial Information (â‚ą in millions):
| Particulars | As of June 30, 2023 | As of June 30, 2022 | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|---|---|
| Equity Share Capital (â‚ą million) | 4,494.74 | 4,494.74 | 4,494.74 | 4,494.74 | 4,494.74 |
| Net Worth (â‚ą million) | 18,390.93 | 15,127.62 | 17,091.29 | 14,067.96 | 13,520.64 |
| Net Asset Value per Equity Share (â‚ą) | 40.92 | 33.66 | 38.03 | 31.30 | 30.08 |
| Total Borrowings (â‚ą million) | 27,391.25 | 25,555.00 | 33,541.95 | 29,528.33 | 16,940.00 |
| Total Income (â‚ą million) | 9,917.75 | 7,383.24 | 31,415.72 | 21,475.08 | 17,684.21 |
| Net Profit (â‚ą million) | 1,299.64 | 1,059.66 | 3,023.33 | 547.32 | 1,053.96 |
| Earnings per Equity Share - Basic | 2.89* | 2.36* | 6.73 | 1.22 | 2.46 |
| Earnings per Equity Share - Diluted | 2.89* | 2.35* | 6.71 | 1.22 | 2.46 |
*Note: Earnings per Equity Share for the three months period ended June 30, 2023 and June 30, 2022 are not annualized.
Objective of the Issue:
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For augmentation of our Bank’s Tier – 1 capital base(1)
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General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Friday, November 3, 2023 |
| Close Date | Tuesday, November 7, 2023 |
| Issue Size | â‚ą463.00 crores |
| Price | â‚ą57 to â‚ą60 per share |
| Lot Size | 250 Shares |
| Basis of Allotment | Friday, November 10, 2023 |
| Initiation of Refunds | Monday, November 13, 2023 |
| Credit of Shares to Demat | Wednesday, November 15, 2023 |
| Listing Date | Thursday, November 16, 2023 |
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.
Do let us know your thoughts on this IPO.
