Decoding the Dar Credit Capital Ltd IPO: An In-Depth Analysis
Dar Credit & Capital Ltd Logo
The financial market is abuzz with the Initial Public Offering (IPO) of Dar Credit Capital Ltd. This blog post aims to provide a comprehensive overview of the IPO, helping potential investors make informed decisions. We'll delve into the company's details, IPO specifics, financial health, and overall prospects.
What Does Dar Credit Capital Do?
Dar Credit & Capital Ltd is a Non-Banking Financial Company (NBFC) that focuses on providing financial services to underserved and semi-urban areas. They specialize in offering:
- Fast digital loan processing for quicker access to funds.
- Flexible lending options tailored to the unique needs of small businesses.
- AI-driven risk assessment tools to improve loan quality and reduce default rates.
Key Highlights of the Dar Credit & Capital IPO
IPO Overview
Status: Preopen
RHP (Red Herring Prospectus): View RHP
Minimum Investment: ₹114,000 (2000 shares)
Important Dates
Open Date: May 21, 2025
Close Date: May 23, 2025
Listing Date (Expected): May 28, 2025
IPO Price Range: ₹57 to ₹60 per share
IPO Size: ₹25.66 Cr
Listing Exchange: NSE SME
IPO Timeline
| Event | Date |
|---|---|
| Bidding Starts | May 21, 2025 |
| Bidding Ends | May 23, 2025 |
| Allotment Finalisation | May 26, 2025 |
| Refund Initiation | May 27, 2025 |
| Demat Transfer | May 27, 2025 |
| Listing | May 28, 2025 |
Detailed IPO Information
IPO Size Breakdown
| Type | Size |
|---|---|
| Total IPO Size | ₹25.66 Cr. |
| Offer For Sale | - |
| Fresh Issue | ₹25.66 Cr. |
Lot Size Details
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹114,000 |
| Retail (Max) | 1 | 2000 | ₹114,000 |
| HNI (Min) | 2 | 4000 | ₹228,000 |
Financial Performance Snapshot
Profit and Loss Trends
| Particulars (in Rs. Crores) | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | 24.66 | 25.57 | 33.01 |
| EBITDA | 15.92 | 16.46 | 21.92 |
| PAT | 2.51 | 2.93 | 3.97 |
Balance Sheet Summary
| Particulars (in Rs. Crores) | FY22 | FY23 | FY24 |
|---|---|---|---|
| Total Assets | 169.65 | 187.27 | 235.82 |
| Share Capital | 10.00 | 10.00 | 10.00 |
| Total Borrowings | 106.08 | 120.45 | 165.58 |
Cash Flow Analysis
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Net Cash Generated From / (used in) operating activities | 20.96 | -14.23 | -31.07 |
| Net Cash Generated From / (used in) investing activities | -7.81 | 10.84 | -0.71 |
| Net Cash Generated From / (used in) financing activities | -13.90 | 12.02 | 42.84 |
| Net Increase (Decrease) In Cash And Cash Equivalents | -0.77 | 8.63 | 11.06 |
SWOT Analysis of Dar Credit & Capital
Strengths
- Fast digital loan processing.
- Flexible lending solutions for underserved clients.
- Strong local market knowledge.
- AI-driven risk tools for improved loan quality.
Weaknesses
- Regionally concentrated loan portfolio.
- High exposure to underserved segments raising NPA risks.
- Dependence on accurate borrower data.
- Potential IT disruptions.
Opportunities
- Expansion into new states.
- Further leverage AI for underwriting and collections.
- Tap into growing MSME demand for digital credit.
- Strengthen presence among women entrepreneurs.
Threats
- Interest rate fluctuations.
- Competitive NBFC landscape.
- Regulatory changes.
- Economic downturns affecting vulnerable borrowers.
How to Apply for the IPO
Applying for the Dar Credit & Capital IPO is simple. Here’s a quick guide:
- Create a UPI ID
- Apply for IPO Online Using Broker App or Website
- Authorise the UPI mandate to block Payment
Frequently Asked Questions (FAQs)
When does Dar Credit and Capital IPO open and close?
Dar Credit and Capital IPO opens from 21 May 2025 to 23 May 2025.
What is the size of the Dar Credit and Capital IPO?
The size of Dar Credit and Capital IPO is ₹25.66 Cr.
What is the price band of Dar Credit and Capital IPO?
The price of Dar Credit and Capital IPO is fixed at ₹57 to ₹60 per share.
What is the minimum lot size and investment required for Dar Credit and Capital IPO?
The minimum lot size of Dar Credit and Capital IPO is 2,000 shares and the investment required is ₹114,000.
What is the allotment date of Dar Credit and Capital IPO?
The share allotment date of Dar Credit and Capital IPO is 26 May 2025.
What is the Dar Credit and Capital IPO listing date?
The Dar Credit and Capital IPO will likely be listed on 28 May 2025.
Who is the book runner for Dar Credit and Capital IPO?
GYR Capital Advisors Private Limited is the book running lead manager for Dar Credit and Capital IPO.
What is the objective of the Dar Credit and Capital IPO?
Dar Credit and Capital plans to utilise the raised capital from the IPO for:
- Repayment/pre-payment of certain borrowings
- General corporate purposes
Contact Information
Company Details
Dar Credit and Capital Limited
Business Tower, 206
AJC Bose Road, 6th Floor, Unit No. 6B
Phone: +91 9883847875
Email: co.secretary@darcredit.com
Website: https://www.darcredit.com/
Registrar Details
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: dccl.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/
Lead Manager
GYR Capital Advisors Private Limited
In Conclusion
The Dar Credit Capital Ltd IPO presents an opportunity to invest in a growing NBFC with a focus on digital lending and underserved markets. By understanding the company's financials, strengths, and potential risks, investors can make a well-informed decision. Always conduct thorough research and consider seeking advice from financial advisors before investing in any IPO.