Amidst the ongoing IPO season, Capital Small Finance Bank is also planning to raise funds via primary market route. The small lender has filed a draft herring prospectus (DRHP) with capital markets regulator SEBI to float an initial public offering (IPO). The IPO consists of a fresh equity share issue worth Rs 450 crore, along with an offer for sale (OFS) of up to 3.84 million equity shares by existing shareholders and promoters. Investors participating in OFS include PI Ventures (3.37 lakh equity shares), Amicus Capital Private Equity I LLP (6.04 lakh equity shares) among others. Proceeds from the issue will be used to augment tier-I capital base to meet the future capital requirements of the lender. As of June 2021, its tier-I capital base was Rs 446 crore. Its capital to risk was 21.12%. Capital Small Finance Bank mainly focuses on the needs of the middle income segment, providing its products and services in that area of operations. The lender is backed by a number of financial behemoths and institutional investors including SIDBI, ICICI Prudential and HDFC Life among others. According to the details given in DRHP, Capital Small Finance Bank is present in four states of north India including Punjab, Haryana, Delhi and Rajasthan, with lender having 159 branches and 161 ATMs. As of June 2021, the lender had deposits worth more than Rs 5,483 crore, which were Rs 4,687 crore a year ago. Advances stood at Rs 3,642 crore compared to Rs 3,145 crore last year. For the June 2021 quarter, net interest income (NII) rose 20% from a year ago to Rs 570.49 crore and the net profit stood at Rs 12.18 crore, which was Rs 6.8 crore a year ago The lender saw an increase in net non-performing assets 1.44% from 1.27% previous year. Provisions and contingencies rose to Rs 10.40 crore against Rs 8.78 crore. The lender has appointed Edelweiss Financial Services, Axis Capital and SBI Capital Markets as the book running lead managers to the issue.