Dar Credit and Capital IPO: Issue dates, price, and lot size

Dar Credit and Capital Limited, a non-banking finance company (NBFC), is gearing up for its stock market debut with an initial public offering (IPO) worth ₹25.66 crores. The offering is a complete fresh issue comprising 42.76 lakh equity shares. The IPO opens for subscription on May 21, 2025, and closes on May 23, 2025. The company's shares are scheduled to be listed on the NSE SME platform on May 28, 2025.

Priced in the range of ₹57 to ₹60 per share with a face value of ₹10, the IPO comes with a lot size of 2,000 shares. Retail investors can apply with a minimum investment of ₹1,14,000 (1 lot), while High Net-worth Individuals (HNIs) must apply for at least 2 lots (₹2,28,000). Share allotment is expected to be finalized on May 26, 2025. As a provider of personal and MSME loans with a strong presence in underserved markets, Dar Credit and Capital offers investors an opportunity to be part of India’s growing financial inclusion story.

Dar Credit and Capital IPO details

Dar Credit and Capital Limited IPO is a fundraise worth ₹25.66 crores comprising purely of a fresh issue with 42.76 lakh shares reserved for the market maker SMC Global Securities Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from May 21, 2025, to May 23, 2025, providing an opportunity for investors looking to gain a stake in the banking and finance sector.

Dar Credit and Capital IPO timeline

The Dar Credit and Capital Limited IPO opens for subscription on May 21, 2025, and closes on May 23, 2025, with allotment scheduled for May 26, 2025.

Dar Credit and Capital IPO review

Incorporated in 1994, Dar Credit and Capital Limited (DCCL) is a Non-Banking Finance Company (NBFC) that offers three core financial products: Personal Loans, Unsecured MSME Loans, and Secured MSME Loans. The company primarily caters to low-income individuals, particularly those in class-four occupations such as municipal cleaners and peons, while also providing credit to small shopkeepers and local vendors. A strong emphasis is placed on supporting women entrepreneurs through accessible lending solutions.

As of December 31, DCCL served 24,608 active customers through a network of 27 branches and camps spread across 64 districts in six Indian states. Its loan portfolio reflects moderate diversification, with 44.46% allocated to personal loans, 40.12% to micro loans, 2.65% to unsecured SME loans, and 12.76% to secured MSME loans.

The IPO proceeds of Dar Credit and Capital Limited are proposed to be utilised primarily to augment the company’s capital base with ₹220 million allocated for this purpose. Additionally, a portion of the funds will be used for general corporate purposes and to cover issue-related expenses.

Dar Credit and Capital IPO financials

As of July 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 6.17%, Return on Capital Employed (ROCE) at 9.22% and a Debt-to-Equity ratio of 2.51. The Return on Net-Worth (RoNW) stands at 6.08%, and the PAT Margin was 12.38%. The Price to Book Value was 0.92. The company’s market capitalisation is ₹85.66 crore.

Amount in ₹ crores

The pre-IPO EPS is at ₹3.97 while the post-IPO EPS will be ₹4.59. Similarly, the pre-IPO Price to Earnings ratio is 15.12 and will become 13.06 post-IPO.

Dar Credit and Capital IPO strengths

Dar Credit and Capital Limited highlights its quick and efficient loan processing system, supported by flexible lending practices and a strong understanding of local and regional markets, especially in underserved rural and semi-urban areas. The company uses advanced technology for end-to-end digital loan origination, disbursement, and collection. It also leverages data analytics and artificial intelligence (AI) for credit scoring and fraud detection, which helps streamline processes and improve risk management. Additionally, it claims to offer competitive interest rates and shorter processing times, backed by a robust underwriting and proactive risk strategy.

The company has shown steady financial growth in recent years. Its revenue from operations rose from ₹24.23 crore in FY22 to ₹24.79 crore in FY23, and further to ₹32.05 crore in FY24. Similarly, profit after tax (PAT) increased from ₹2.23 crore in FY22 to ₹2.72 crore in FY23 and reached ₹3.68 crore in FY24, reflecting consistent improvement in operational performance.

Dar Credit and Capital IPO weaknesses

Dar Credit and Capital’s revenue is primarily dependent on interest income, which made up over 88% to 98% of its total revenue across recent financial periods. Any significant fluctuations in interest rates may adversely impact its net interest income and margins. The company also has a high regional concentration of its loan portfolio, particularly in West Bengal and Rajasthan. These two states contributed a major share to its revenue from FY22 to Q1 FY25. Any adverse developments in these regions could affect the company's performance. Additionally, Dar Credit and Capital’s focus on lending to class-four municipal employees and small vendors—segments often lacking formal credit histories—exposes it to greater credit risk, increasing the likelihood of higher NPAs. Dependence on borrower-provided information further increases this risk, as inaccurate data could result in poor credit decisions.

The company also faces regulatory and operational challenges. A past penalty related to non-compliance with NCD listing obligations on BSE reflects the importance of adhering to regulatory frameworks. Its current debt burden stands at ₹159.24 crore as of June 30, 2024, and any difficulty in servicing this debt could impact financial stability. Moreover, the company and its key stakeholders are involved in ongoing legal proceedings, which may have negative business implications if resolved unfavorably. On the financial front, Dar Credit and Capital reported consistent negative cash flows from operating, investing, and financing activities in FY22, FY24, and Q1 FY25. If such outflows continue to exceed inflows, the company may face liquidity pressures going forward.

Should you invest in the Dar Credit and Capital IPO?

Investing early in Dar Credit and Capital Limited’s IPO offers a chance to be part of its growth journey in the lending and financial services space. However, potential investors should take a closer look at several key aspects—such as the company’s operational history, financial performance, industry landscape, and future strategy. It's important to align the investment with your personal financial goals and risk tolerance. Reviewing the offer document in detail and consulting a financial advisor is advisable before making any investment decision.

FAQs

What is the Dar Credit and Capital Limited IPO?

The Dar Credit and Capital Limited IPO is an NSE SME offering consisting of 2,000 equity shares with a face value of ₹10, aiming to raise ₹25.66 crore. The price band has been set between ₹57 to ₹60 per share, with a minimum order quantity of 2000 shares. This IPO will be open for subscription from May 21, 2025, to May 23, 2025. GYR Capital Advisors Private Limited is the book-running lead manager, Kfin Technologies Limited is the registrar while SMC Global Securities Limited is the market maker.

When will the Dar Credit and Capital IPO open?

The Dar Credit and Capital Limited IPO will open for subscription on May 21, 2025, and will close on May 23, 2025.

When is the Dar Credit and Capital IPO listing date?

The tentative listing date for the Dar Credit and Capital Limited IPO is Wednesday, May 28, 2025.