Dar Credit and Capital IPO
IPO Details
Dar Credit and Capital IPO is a bookbuilding of ₹25.66 Crore. The issue is entirely a fresh issue of ₹25.66 Crore and an offer for sale of Nil.
Dar Credit and Capital IPO opens for subscription on 2025-05-21 and closes on 2025-05-23. The allotment is expected to be finalized on 2025-05-26. The IPO will be listed on BSE, NSE with tentative listing date as 2025-05-28.
Price band is set at ₹57 to ₹60 per share. The minimum lot size for application is 2000 shares (₹114000). It is suggested to bid at the cutoff price to avoid oversubscription, which is about ₹120000.
IPO Timeline
Company Overview
Dar Credit and Capital IPO Details
Dar Credit and Capital Limited is a non-banking financial company (NBFC) specializing in providing credit solutions to underserved segments, including low-income individuals, small vendors, and women entrepreneurs. The company focuses on offering personal loans, unsecured MSME loans, and secured MSME loans, aiming to empower economically weaker sections across various states in India.
Company Overview
With over 30 years of experience in the financial sector, Dar Credit and Capital has established a presence in states like West Bengal, Rajasthan, Bihar, Jharkhand, Madhya Pradesh, and Gujarat. The company’s mission is to make financial services accessible to those with limited or no access to traditional banking, offering competitive rates and flexible repayment options.
Financial Performance
| Particulars | FY 2022 | FY 2023 | FY 2024 | FY 2024 (9M) |
|---|---|---|---|---|
| Revenue | ₹24.42 Cr | ₹25.57 Cr | ₹33.01 Cr | ₹31.03 Cr |
| PAT | ₹2.50 Cr | ₹2.93 Cr | ₹3.97 Cr | ₹4.92 Cr |
| Assets | ₹169.65 Cr | ₹187.27 Cr | ₹235.82 Cr | ₹221.60 Cr |
IPO Details
- Issue Size: ₹25.66 Crore
- Fresh Issue: ₹25.66 Crore
- Offer for Sale: Nil
- Price Band: ₹57-₹60 per share
- Lot Size: 2,000 shares
- Minimum Investment: ₹1,20,000 (at upper price band)
- Listing On: NSE SME
IPO Objectives
- To augment the company’s capital base for future growth
- To meet working capital requirements
- General corporate purposes
Subscription Details
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | 12.14x |
| NII | 15% | 4.28x |
| Retail | 35% | 10.54x |
| Total | 100% | 19.06x |
Key Strengths
- Focused approach towards underserved and unbanked segments
- Experienced management with deep industry knowledge
- Strong presence in multiple states with growth potential
- Diversified loan portfolio catering to various customer needs
Risk Factors
- High exposure to economically weaker sections may lead to higher default rates
- Regulatory changes in the NBFC sector could impact operations
- Dependence on regional markets may limit scalability
- Competition from other financial institutions and fintech companies
Lead Managers
- GYR Capital Advisors Private Limited
Registrar
- KFin Technologies Limited
GMP Trends
The Grey Market Premium (GMP) for Dar Credit and Capital IPO is currently ₹12, indicating a premium of approximately 20% over the upper price band.
Expert Opinion
Analysts suggest that while the company has shown consistent growth and has a clear focus on underserved markets, potential investors should consider the risks associated with lending to economically weaker sections. The IPO may be suitable for investors with a high-risk appetite looking for exposure to the NBFC sector.
Business Segments
Information about business segments will be available soon.
Financial Performance
| Particulars | FY 2022 | FY 2023 | FY 2024 | FY 2024 (9m) |
|---|---|---|---|---|
| assets | ₹169.65 Cr | ₹187.27 Cr | ₹235.82 Cr | ₹221.6 Cr |
| pat | ₹2.5 Cr | ₹2.93 Cr | ₹3.97 Cr | ₹4.92 Cr |
| revenue | ₹24.42 Cr | ₹25.57 Cr | ₹33.01 Cr | ₹31.03 Cr |
Additional Information
The proceeds from the IPO will be used for:
- Expansion of manufacturing facilities
- Debt repayment
- General corporate purposes
Information about key strengths will be available soon.
Information about risk factors will be available soon.
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | 12.14x |
| NII | 15% | 4.28x |
| Retail | 35% | 10.54x |
| Total | 100% | 19.06x |
Industry analysts are positive about the company's growth prospects given its strong financial performance, diversified product portfolio, and expansion plans. The IPO is expected to receive good response from investors looking for exposure to the sector.
Grey Market Premium
*Expected Premium is derived from market rumors. It is not a guaranteed indicator of the actual listing price.
IPO Quick Info
Market Lot
IPO Details
Lead Managers
- Axis Capital Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
Registrar
Link Intime India Private Limited
