Dar Credit and Capital IPO: Price And GMP

Dar Credit and Capital IPO - Complete Overview

Dar Credit and Capital IPO under the SME IPO category is a book build issue of Rs. 25.66 Cr from Dar Credit and Capital Limited which was incorporated in 1994. It is a small finance NBFC offering three major types of financial products: (i) Personal Loans, (ii) Secured MSME Loans and (iii) Unsecured MSME Loans.

The company offers credit facilities to low-income individuals, more specifically, class-four salary job beneficiaries such as municipal cleaners and peons. In addition, DCCL offers credit to small retail shop owners and hawkers and focuses greatly on empowering female entrepreneurs.

The company had 24,608 Active Customers as of 31st December, who are served through our 27 branches and Camps spread across 64 districts of 6 states in India.

The company's loan portfolio was diversified to a moderate extent, with 44.46% personal loans to individuals, 40.12% micro loans, 2.65% unsecured SME loans, and 12.76% secured MSME loans.

Dar Credit and Capital IPO Overview

The Dar Credit and Capital IPO begins on May 21, 2025, and ends on May 23, 2025. 

The Rs. 25.66 crore new SME IPO comprises a fresh issue of 42.76 lac Shares. 

This upcoming IPO is available from May 21 to May 23, 2025. The Dar Credit and Capital IPO price is Rs. 57 to Rs. 60 for each Share. 

The expected Dar Credit and Capital IPO listing date is May 28, 2025, and listing at the NSE and SME.

Click to open demat account and apply for the IPO.

 

 

Company Financial

(Amount in Lac)

Period	31 Dec 2024	31 Mar 2024	31 Mar 2023
Total Assets	221.60	235.82	187.27
Total Revenue	31.03	33.01	25.57
PAT	4.92	3.97	2.93
Net Worth	69.67	65.25	61.78
Reserves & Surplus	60.52	56.10	52.63
Borrowings	145.89	165.58	120.45

 

Cash Flows

(Amount in lac)

Net Cash Flow in Multiple Activities	31 Dec 2024	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	587.82	(3,107.18)	(1,423.47)
Net Cash Flow Investing Activities	508.82	(70.94)	1,084.19
Net Cash Flow Financing Activities	(2,112.58)	4,283.81	1,202.13

 

Revenue Bifurcation

Category wise Revenue Bifurcation

(Rs. in lac)

(Source: RHP)

 The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Increase the company's capital base.

• Issue Costs.

• General corporate purposes.
  
  

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Peers of Dar Credit and Capital Ltd. 

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Spandana Sphoorty Financial Ltd.	10	70.42	3.94
Muthoot Microfin Limited	10	30.20	4.82
Credit Access Grameen Ltd.	10	90.88	12.58
Fusion Microfinance	10	50.30	3.24
Satin Creditcare Network Ltd.	10	44.34	3.88

 

 

Evaluation

Dar Credit and Capital IPO price is Rs. 57 to Rs. 60 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs. 3.97 from the last year, the resulting P/E ratio is 15.11x.

Considering the weighted EPS of Rs. 3.38 for the last three years, the P/E ratio is 17.75x.

 

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Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 5.69.

Particulars	P/E Ratio (x)
Highest	12.58
Lowest	3.24
Average	5.69

In simple words, the P/E ratio of this IPO (15.11x), compared with the industry’s average P/E of 5.69x, has an overvaluation (on a P/E ratio basis only). Hence, the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Flexible lending practices combined with speedy and effective loan processing.

• Excellent knowledge of regional markets.

• Utilize technology to enhance customer service, risk management, and credit evaluation so that we can process applications and loan disbursements more quickly.

• Knowledgeable and skilled management group.
  
  

IPO’s Weaknesses

• Its business and profitability are heavily reliant on government policies, subsidies, and incentives for the solar sector. Any negative changes would have a material effect on its business.

• The majority of revenues come from a small number of clients. A loss of any major client can impact the financial performance as well as growth potential negatively.

• As the firm increases its presence outside of the country, it is threatened by regulatory compliance, geopolitical stresses, and exchange rate fluctuations which could influence its foreign operations.

 

 

Dar Credit and Capital IPO GMP

Dar Credit and Capital IPO GMP is Rs. 12 as of 20 May 2025. Hence, its estimated listing price is Rs. 72.

IPO Timetable (Tentative)

The Dar Credit IPO date of subscription is May 21 to May 23, 2025, allotment on May 26, refund initiation on May 27, and listing on May 28, 2025.

Events	Date
IPO Opening Date	May 21, 2025
IPO Closing Date	May 23, 2025
IPO Allotment Date	May 26, 2025
Refund Initiation	May 27, 2025
IPO Listing Date	May 28, 2025

 

Dar Credit and Capital IPO Details 

The IPO with a Face Value of Rs. 10 per share offers a total issue size of 42,76,000 Shares (Rs. 25.66 Cr).

IPO Opening & Closing date	21 May, 2025 to 23 May, 2025
Face Value	Rs. 10 per Share
Issue Price	Rs. 57 to Rs. 60 per Share.
Lot Size	2000 Shares
Issue Size	42,76,000 Shares (Rs. 25.66 Cr)
Offer for Sale	-
Fresh Issue	42,76,000 Shares (Rs. 25.66 Cr)
Listing at	NSE, SME
Issue Type	Book Building Issue
Registrar	Kfin Technologies Limited

 

IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs. 1,20,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs. 2,40,000.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
HNI (Min)	2 Lots

 

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IPO Reservation (% of Net Issue)

Institutional’s Portion	50%
Retail’s Portion	35%
Non-Institutional’s Portion	15%

 

Promoters And Management of Dar Credit and Capital Ltd.

• Mr. Ramesh Kumar Vijay

• Mr. Rajkumar Vijay

• Mrs. Rakshita Vijay.

Pre-Issue Promoter Shareholding	98.47%
Post-Issue Promoter Shareholding	-

 

 

IPO Lead Managers

• GYR Capital Advisors Private Limited.
  
  
  

Dividend Policy

The company has paid a dividend of Rs. 0.5 per share in the last three fiscal years. 

 

Conclusion

Dar Credit and Capital IPO provides an opportunity to investors to invest in a fast-growing small finance NBFC having good regional presence and customer orientation. Even with a above-industry P/E, the issue is reasonably valued in terms of financial growth and market opportunity.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.