Capital Small Finance Bank shares list at 8% discount to issue price

Shares of Capital Small Finance Bank on Wednesday made a weak debut and got listed with a discount of 8 per cent against the issue price of Rs 468. The stock is listed at Rs 430.25 on the National Stock Exchange (NSE), an 8.07 per cent discount to its issue price of Rs 468. Meanwhile, on BSE, the stock fell 7.05 per cent from its issue price to list at Rs 435.

In the mid-session trade, the 30-share BSE Sensex benchmark slumped 470.96 points or 0.66 per cent to 71,084.23 points, while NSE Nifty fell 0.6 per cent to 21,613.50 points. 

The initial share sale of Capital Small Finance Bank was subscribed 4 times on the last day of the share sale on February 9. The IPO had a fresh issue of up to Rs 450 crore and an offer-for-sale of up to 15,61,329 equity shares. 

According to Zee Business Managing Editor Anil Singhvi, short-term investors should keep a stoploss of Rs 468. It is worth mentioning that Singhvi had advised that only long-term investors should subscribe to the IPO.

The offer had a price range of Rs 445-468 a share. Capital Small Finance Bank on Tuesday collected Rs 157 crore from anchor investors. It will utilise the proceeds from the fresh issue towards augmenting the tier-I capital base to meet its future capital requirements.

The Jalandhar-based bank, which began operations in 2016 after converting itself from a local area bank, has a 24 per cent stake owned by the promoter family led by Sarvjit Singh Sarma and his family.