unlisted-share-logo Why Capital Small Finance Bank is raising Rs. 65 crores?
17 Apr, 2023
17 Apr, 2023
52   

1. What is the purpose of Capital Small Finance Bank raising funds?

Capital Small Finance Bank is raising funds of Rs. 65 crores from 6 different investors on a private placement basis, under the preferential issue of upto 13,82,700 equity shares of the Bank having Face Value of ₹10/- (Rupees Ten) each at a premium of ₹458/- In 2014, approval was granted for the conversion of ‘Capital Local Area Bank Limited’ into ‘Small Finance Bank’ by RBI and the Bank started its operations as a small finance bank in 2016.  As the bank received the license as a small finance bank, the geographical barriers were removed and the bank has planned to expand its operations to new regions exponentially. To meet the expenses for expansion as well as working capital requirements of the bank, the Bank needs capital to execute its growth plans and to meet the Regulatory requirement of maintaining capital adequacy of 15% and leverage the debt capital. 

2. Who are the investors from which company is raising funds?

Following the details of investors and their investments in the Bank. 
Sr. NO. Name of Investor Shares to be allotted Face Value Premium Consideration
1 Max Life Insurance upto 10,57,700 10/- 458/- ₹49.51 Cr
2 SIDBI upto 54,350 10/- 458/- ₹2.45 Cr
3 Amicus Capital PE upto 60,870 10/- 458/- ₹2.85 Cr
4 Amicus Capital Partners upto 7065 10/- 458/- ₹.33 Cr
5 PiVenturesLLP upto 67,935 10/- 458/- ₹3.18 Cr
6 Oman India upto1,34,780 10/- 458/- ₹6.31 Cr

3. What is the valuation at which the company is raising funds? 

The valuation at which the Company is raising funds can be calculated as per the given formula-  Valuation = (Total number of outstanding shares)*(current share price) Total number of outstanding shares =  3,56,35,154 ( As on 15.04.2023)  Issue Price =  Rs. 458  Valuation =  3,56,35,154*458 ≈ Rs. 1632 crore crores So, the Company is raising the fund at the valuation of Rs. 1632 crore.

4. What is the P/B value of the company at which this funding is raised?

As of March 31.12.2022, the book value of the Company is 172, and the per share price is Rs. 425. The P/B value can be calculated using the given formula-  P/B = Currency share price/ Book Value  P/B =  425/172 = 2.47 So, the Company is raising funds at a P/B of 2.47. 

5. What is the value at which ESOP are issued by a company?

The board has decided to issue ESOP up to 6,85,049  fully paid-up equity shares in the Bank of the face value of ₹10/- each at a premium of ₹161/-  each aggregating to ₹171/- each. Note: Check the Latest Capital Small Finance Bank Unlisted Shares Price at UnlisteZone Android or iOS Mobile App.
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