Dar Credit & Capital IPO

Dar Credit & Capital IPO

₹1,20,000 / 2000 shares

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Dar Credit & Capital IPO Details

RHP/DRHP

Issue Date

21 May - 23 May'25

Price Range

₹57 - ₹60

Lot Size

2000

IPO Size

₹25.66 Cr

Dar Credit & Capital IPO Listing Details

Listing On

28 May'25

Issue Price

₹60

Listed Price

₹ 65.15

Retail Gain/Listing Gain

▲8.58%

Schedule of Dar Credit & Capital IPO

Start date

21/05/2025

End date

23/05/2025

Allotment of bids

Refund Initiation

27/05/2025

Listing on exchange

28/05/2025

About Dar Credit and Capital Ltd IPO

The IPO of Dar Credit and Capital Ltd comprises a fresh issue of up to 42,76,000 equity shares of face value of ₹ 10 each. There is no offer for sale in this IPO. The total issue size is ₹25.66 crores in the upper price band.

Objectives of Dar Credit and Capital Ltd IPO

  • Augment the capital base of the company
  • General corporate purposes
  • Issue expenses

Dar Credit and Capital Ltd IPO Valuation

Dar Credit and Capital Ltd IPO Share Offer and Subscription Details

Industry Outlook

India has a diversified financial sector undergoing rapid expansion both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non- banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities.

India’s financial services industry has experienced huge growth in the past few years. This momentum is expected to continue. India’s private wealth management Industry shows huge potential. India is expected to have 16.57 lakh HNWIs in 2027. This will indeed lead India to be the fourth-largest private wealth market globally by 2028. India’s insurance market is also expected to reach US$ 250 billion by 2025. This will further offer India an opportunity of US$ 78 billion in additional life insurance premiums from 2020-30.

Company Information

Dar Credit and Capital Ltd offers three primary types of financial products: (i) Personal Loans, (ii) Unsecured MSME Loans, and (iii) Secured MSME Loans. The company specialises in offering credit solutions to low-income individuals, particularly those in class-four (Group D) employment roles, such as cleaners, sweepers, and peons working in municipalities. The company also extends credit to small-scale shopkeepers and vendors, with a strong focus on empowering women entrepreneurs.

Quick and Efficient Loan Processing Along with Flexible Lending Practices

As an NBFC, the company is known for its streamlined processes and quick decision-making, which often leads to faster loan approvals and disbursements compared to banks. This agility is particularly beneficial for businesses needing quick access to working capital or individuals seeking immediate financing.

The use of digital platforms and technology in the loan application process further enhances the efficiency of loan disbursement, reducing paperwork and turnaround time. The company has greater flexibility in its lending practices, allowing it to cater to a wider range of customer needs.

Strong Understanding of Local Markets

The company has developed a profound understanding of local markets and regional economies, which empowers it to assess the financial needs of local businesses and individuals with greater accuracy and effectiveness.

This localised expertise enables it to craft financial products that are not only tailored to meet the unique requirements of its customers but also resonate with their specific contexts and challenges. By maintaining strong relationships with its clients, it fosters trust and loyalty, which are essential for long-term partnerships.

Innovative Use of Technology

The company utilises advanced technology to enhance its credit assessment, risk management, and customer service processes, enabling it to quickly process applications and disburse loans. By leveraging digital platforms, it has a fully digitised loan originating system which provides digitised facilities from loan sourcing to disbursement to collection.

Additionally, it increasingly employs technologies like data analytics and artificial intelligence for credit scoring, fraud detection, and gaining insights into customer behaviour.

Attractive Interest Rates and Shorter Processing Time

The company offers attractive interest rates combined with shorter processing times, making its financial products highly appealing to borrowers. By providing competitive interest rates, it ensures that its clients benefit from lower borrowing costs, which is particularly advantageous for both individuals and small businesses seeking to manage their finances effectively. This commitment to affordability not only enhances customer satisfaction but also fosters long-term relationships built on trust and value.

Strong Underwriting Process and Risk Management Strategies

The company employs a strong underwriting process and robust risk management policies that are integral to its commitment to maintaining financial stability and safeguarding our clients’ interests. The underwriting process is meticulously designed to assess each applicant’s creditworthiness comprehensively, utilising advanced analytics and data-driven insights to evaluate various risk factors effectively.

This thorough evaluation not only helps it make informed lending decisions but also ensures that it extends credit to individuals and businesses that demonstrate the capacity to meet their obligations.

Risks of Dar Credit and Capital Ltd

  • Interest Rate Risk

The company’s business is vulnerable to interest rate risk, and volatility in interest rates could have an adverse effect on its net interest income and net interest margin, thereby affecting its results of operations.

  • Regional Risks

The company’s gross loan portfolio is derived from loans originating from various states, and any adverse developments in these regions may have an adverse effect on its business, results of operations, financial condition and cash flows.

  • Exposure to High-risk Customer Segment

The NBFC industry in India faces certain risks due to the category of customers that it services, which are not generally associated with other forms of lending. As a result, it may experience increased levels of nonperforming assets and related provisions and write-offs that may adversely affect its business, financial condition and results of operations.

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Comparison with peers

Anchor Investor Bidding Date May 20, 2025

IPO Registrar and Book Running Lead Manager

  • IPO Registrar: Kfin Technologies Ltd
  • Book Running Lead Manager: Gyr Capital Advisors Pvt Ltd

Business Model

The company offers:

  • Personal loans to low-income individuals, primarily class-four permanent employees such as cleaners, sweepers, and peons working in municipalities.

  • Unsecured MSME loans to people in rural and semi-urban areas predominantly in West Bengal, Bihar and Jharkhand.

  • MSME loans which are specifically tailored to support the financial needs of small and medium-sized business enterprises, providing them with the necessary resources to sustain and grow their operations.

Company Growth Trajectory

The revenue from operations of Dar Credit and Capital Ltd grew from ₹24.4683 crores in FY 22 to ₹32.0488 crores in FY 24. Its EBITDA margin grew from 64.55% in FY 22 to 66.40% in FY 24, while PAT margin grew from 10.26% in FY 22 to 12.38% in FY 24. Strong understanding of local markets and an experienced management team have contributed to the company’s growth over the years.

Market Position

Over the past 30 years, Dar Credit and Capital Ltd has developed a profound understanding of the financial needs of underbanked and underserved customers. Throughout this journey, the company has not only gained insights into customer behaviour and requirements within this segment but have also implemented various initiatives to enhance the customer experience. In addition to its headquarters in Kolkata and regional office in Jaipur, the company operates through its branch offices across West Bengal, Rajasthan, Bihar and Jharkhand. Also, camp offices are set up in the states of Madhya Pradesh and Gujarat.

Dar Credit and Capital Ltd Profit and Loss

Dar Credit and Capital Ltd Balance Sheet

How to Check Allotment Status of Dar Credit and Capital Ltd?

1. Visit the Registrar’s Website

  • Visit the official website of Kfin Technologies Ltd
  • Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’ dropdown
  • Click on any one of the links
  • Choose the company name and enter either your application number, Demat account or PAN number
  • Enter captcha and click on ‘Submit’

2. Check on the NSE Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Dar Credit and Capital Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

  • Company name from dropdown
  • Application number
  • PAN

Then click 'Submit' to know the allotment status.

How to Apply for Dar Credit and Capital Ltd IPO?

  • Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  • Specify IPO details - Enter the number of lots and the price you wish to apply for.
  • Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
  • Mandate Notification - Your UPI app will receive a mandate notification to block funds.
  • Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.

Dar Credit & Capital IPO FAQs

The Dar Credit & Capital IPO opens for subscription from 21-05-2025 to 23-05-2025, with a total issue size of ₹25.66 Cr. The IPO price band is ₹57 to ₹60 per share with a lot size of 2000. The company aims to list the shares on BSE & NSE on 28-05-2025.

The Dar Credit & Capital IPO will open for subscription on 21-05-2025 and will close on 23-05-2025 for investors.

The minimum lot size for the Dar Credit & Capital IPO is 2000 equity shares, requiring a minimum investment of ₹120000 for retail investors applying in the IPO.

The price band of the Dar Credit & Capital IPO has been fixed at ₹57 to ₹60 per equity share.

You can apply for the Dar Credit & Capital IPO online through the Kotak Neo Website or the Kotak Neo App using UPI or ASBA during the IPO subscription period.

Dar Credit & Capital IPO allotment will take place on [-].

You can check the Dar Credit & Capital IPO allotment status online on the registrar’s website or on the NSE and BSE IPO allotment pages using your application number, PAN, or demat account details.

Dar Credit & Capital shares will list on the stock exchanges on 28-05-2025.

You can find detailed information about the Dar Credit & Capital IPO, including its business operations, financial performance, risk factors, and IPO objectives, in the Draft or Red Herring Prospectus (RHP).

The IPO of Dar Credit and Capital Ltd comprises a fresh issue of up to 42,76,000 equity shares of face value of ₹ 10 each.

The IPO of Dar Credit and Capital Ltd will go live on May 21, 2025. It closes on May 23, 2025.

You can read more about the IPO of Dar Credit and Capital Ltd from the company’s red herring prospectus here.

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Neo Research Team, nor is it a report published by the Kotak Neo Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.

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