Dar Credit and Capital IPO
- IPO Date21 May, 2025 to 23 May, 2025
- Listing Date28 May, 2025
- Face Value₹10 per share
- Issue Price₹57 to ₹60 per share
- Lot Size2000 Shares
- Minimum Investment₹1,20,000
- Listing AtNSE SME
- Total Issue Size42,76,000 Shares
(aggregating up to ₹25.66 Cr) - Fresh Issue42,76,000 Shares
(aggregating up to ₹25.66 Cr)
- Offer for Sale-
- Issue TypeBookbuilding IPO
- Share holding pre issue1,00,00,000
- Shareholding post issue1,42,76,000
IPO Dates
Closing Date
23 May, 2025
Initiation of Refunds
27 May, 2025
Listing Date
28 May, 2025
21 May, 2025
Opening Date
26 May, 2025
Basis of Allotment
27 May, 2025
Credit of Shares
Dar Credit and Capital Lot Size
Investors can bid for a minimum of 2000 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹1,20,000 |
| Retail (Max) | 1 | 2000 | ₹1,20,000 |
| HNI (Min) | 2 | 4000 | ₹2,40,000 |
Dar Credit and Capital Promoter Holding
The Promoters of the company are Mr. Ramesh Kumar Vijay, Mr. Rajkumar Vijay and Mrs. Rakshita Vijay.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 98.47% | - |
Dar Credit and Capital COMPANY INFORMATION
Dar Credit and Capital IPO is a bookbuilding of ₹25.66 crores. The issue is entirely a fresh issue of 42.76 lakh shares. Dar Credit and Capital IPO opens for subscription on May 21, 2025 and closes on May 23, 2025. The allotment for the Dar Credit and Capital IPO is expected to be finalized on Monday, May 26, 2025. Dar Credit and Capital IPO will be list on NSE SME with a tentative listing date fixed as Wednesday, May 28, 2025. Dar Credit and Capital IPO price band is set at ₹57 to ₹60 per share. The minimum lot size for an application is 2000. The minimum amount of investment required by retail investors is ₹1,14,000. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹1,20,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹2,40,000. GYR Capital Advisors Private Limited is the book-running lead manager of the Dar Credit and Capital IPO, while Kfin Technologies Limited is the registrar for the issue.The market maker for Dar Credit and Capital IPO is Smc Global Securities Ltd.. Refer to Dar Credit and Capital IPO RHP for detailed information.
Incorporated in 1994, Dar Credit and Capital Limited is a Non-Banking Finance Company (NBFC) offering three primary types of financial products: (i) Personal Loans, (ii) Unsecured MSME Loans, and (iii) Secured MSME Loans.
The company offers credit solutions to low-income individuals, especially those in class-four employment roles like cleaners and peons in municipalities.
Additionally, DCCL extends credit to small-scale shopkeepers and vendors, strongly focusing on empowering women entrepreneurs.
As of December 31, the company had 24,608 Active Customers, who are served by our 27 branches and Camps across 64 districts in 6 states in India.
The company's loan portfolio was moderately diversified, comprising 44.46% personal loans to individuals, 40.12% micro loans, 2.65% unsecured SME loans, and 12.76% secured MSME loans.
Services:
- Personal Loan to the employees of Municipalities
- Unsecured MSME Loans
- Secured MSME Loans
As of December 31, 2024, the company had 224 employees.
Competitive Strength:
- Quick and Efficient Loan Processing along with flexible Lending Practices.
- Strong Understanding of Local Markets.
- Use technology to improve credit assessment, risk management, and customer service, allowing us to swiftly process applications and disburse loans.
- Experienced and Qualified Management Team.
Dar Credit and Capital IPO Analysis – A Comprehensive Review
Dar Credit and Capital Limited, a non-banking financial company (NBFC) registered with the RBI, is venturing into the public markets through an IPO aiming to raise ₹2565.60 lakhs. Incorporated in 1994 and headquartered in Kolkata, the company provides personalized loan solutions primarily to underserved communities, including Group D government workers and micro-entrepreneurs, especially women in semi-urban and rural India.
Dar Credit and Capital IPO Objectives of the IPO
The primary goal of the IPO is to strengthen the company’s capital base. The net proceeds from the issue, amounting to ₹2305.70 lakhs after deducting issue expenses, will be used in the following manner:
₹2200.00 lakhs towards augmenting Tier-I capital to support onward lending.
₹105.70 lakhs allocated for general corporate purposes.
Dar Credit and Capital IPO Financial Performance at a Glance
Revenue Growth: ₹2,446.83 lakhs in FY22 to ₹3,204.88 lakhs in FY24, showing a CAGR of ~14.73%.
Profit After Tax (PAT): Improved from ₹250.94 lakhs in FY22 to ₹491.94 lakhs in Dec 2024.
EBITDA Margin: Strong and stable around 64% to 69%.
Return on Equity (ROE): Moderate, rising from 4.08% in FY22 to 7.20% in Dec 2024.
Debt-Equity Ratio: Has grown slightly from 1.76 in FY22 to 2.51 in FY24.
Dar Credit and Capital IPO Strengths of Dar Credit and Capital
Pros
Targeted Business Model: Focuses on underserved customer segments with limited access to formal credit.
High Operating Efficiency: Maintains robust EBITDA margins consistently above 64%.
Diversified Lending Portfolio: Offers unsecured MSME, secured MSME, and personal loans.
Technological Adaptation: Digital disbursements and mobile-based loan sourcing.
Experienced Promoters: A strong promoter group with extensive domain knowledge.
Cons
Moderate Profitability: Net margins and ROE are lower compared to listed peers.
High Leverage: A rising debt-equity ratio implies potential future solvency stress.
Interest Rate Sensitivity: Heavily reliant on interest income (over 90% of total income), making the company vulnerable to interest rate fluctuations.
Competition: Faces stiff competition from large NBFCs and microfinance institutions.
Regional Concentration: Operations largely confined to a few states like West Bengal, Bihar, Rajasthan, and Jharkhand.
Industry Position and Peer Comparison
When compared with established NBFC peers such as Muthoot Microfin, CreditAccess Grameen, and Fusion Finance, Dar Credit has:
Lower scale of operations.
Slightly weaker PAT margins.
Comparable EBITDA margins.
Moderately higher debt-equity levels.
Dar Credit and Capital IPO Summary
Dar Credit and Capital IPO presents an opportunity to invest in a niche NBFC targeting financially excluded demographics. While the company's operational efficiency and social impact focus are commendable, investors must weigh the moderate profitability and interest rate sensitivity before making an investment decision.
FAQs about Dar Credit and Capital IPO
Dar Credit and Capital IPO will open on 21 May, 2025 and close on 23 May, 2025. Investors must apply within this period to participate.
The Dar Credit and Capital IPO price band is set between ₹57.00 and ₹60.00 per share. The minimum lot size is 2000, requiring an investment of at least ₹120000.00.
The Dar Credit and Capital IPO shares are expected to be listed on 28 May, 2025, subject to regulatory approvals and final allotment.
You can track your Dar Credit and Capital IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Dar Credit and Capital IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.
Dar Credit focuses on low-income individuals and women entrepreneurs in semi-urban and rural areas, often neglected by mainstream banks, positioning itself as a socially responsible lender with high-impact microfinance solutions.
The company intends to infuse ₹2200 lakhs into Tier-I capital for onward lending and allocate ₹105.7 lakhs to strengthen operations, marketing, and corporate initiatives
While Dar Credit lags in revenue and profit scale, it holds its ground in operating margins and exhibits potential with consistent revenue growth and improving return metrics.
Dar Credit leverages digital tools like mobile sourcing, e-KYC, and credit bureau integrations to streamline loan disbursements and collections, ensuring efficiency and fraud control.
Key risks include interest rate sensitivity, regional concentration, reliance on debt for growth, and exposure to economically vulnerable customer segments.
Investors with a high-risk appetite and a focus on social impact and financial inclusion may find value in the IPO, especially if the company successfully scales and diversifies.
While a BBB- rating suggests moderate credit risk, it may influence borrowing costs and investor confidence, making future capital infusion through lower interest borrowings a challenge unless financial metrics improve.