CAPITAL SMALL FINANCE BANK LIMITED ANNOUNCED ITS INITIAL PUBLIC OFFERING (IPO) OF EQUITY SHARES TO OPENS ON WEDNESDAY, FEBRUARY 7, 2024 Sets Price Band fixed at ₹ 445 to ₹ 468 per equity share of face value of ₹ 10 each

CAPITAL SMALL FINANCE BANK LIMITED ANNOUNCED ITS INITIAL PUBLIC OFFERING (IPO) OF EQUITY SHARES TO OPENS ON WEDNESDAY, FEBRUARY 7, 2024 Sets Price Band fixed at ₹ 445 to ₹ 468 per equity share of face value of ₹ 10 each

• Price Band fixed at ₹ 445 to ₹ 468 per equity share of face value of ₹ 10 each (“Equity Share”)

• Bid/ Offer will open on Wednesday, February 7, 2024 and close on Friday, February 9, 2024. The Anchor Investor Bidding Date shall be Tuesday, February 6, 2024;

• Bids can be made for a minimum of 32 Equity Shares and in multiples of 32 Equity Shares thereafter

Mumbai, 02nd February 2024 (GNI): Capital Small Finance Bank Limited (the “Bank” or “Capital SFB”), shall open the initial public offering of its Equity Shares of face value ₹ 10 on Wednesday , February 7, 2024. (“Offer”)

The Anchor Investor Bidding Date shall be Tuesday, February 6, 2024.  The Offer will open on Wednesday, February 7, 2024 for subscription and will close on Friday, February 9, 2024.o

The Price Band of the Offer has been fixed at ₹ 445 to ₹ 468 per Equity Share. Bids can be made for a minimum of 32 Equity Shares and in multiples of 32 Equity Shares thereafter.

The initial public offering comprises a fresh issue of Equity Shares aggregating to ₹ 4,500 million [₹ 450 crore] (“Fresh Issue”) and an offer of sale of up to 1,561,329 Equity Shares by the Selling Shareholders (“Offer for Sale” and together with the Fresh Issue, the “Offer”). 1

The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting the Bank’s Tier – I capital base to meet its future capital requirements. As the Bank continues to grow its loan portfolio and asset base, the Bank expects to require additional capital in order to continue to meet applicable capital adequacy ratios with respect to its business. The Bank intends to grow its loan advances which would require Tier – I capital to comply with the applicable capital adequacy requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer. (the “Objects of the Issue”)

The Offer for Sale comprises Equity Shares aggregating up to 836,728 Equity Shares by Oman India Joint Investment Fund II; up to 151,153 Equity Shares by Amicus Capital Private Equity I LLP; up to 17,544 Equity Shares by Amicus Capital Partners India Fund I (collectively, the “Investor Selling Shareholders”) and up to 555,904 Equity Shares by certain other persons listed in the Red Herring Prospectus (collectively, the “Other Selling Shareholders” and together with the Investor Selling Shareholders, the “Selling Shareholders”)

The Equity Shares are being offered through the Red Herring Prospectus dated February 1, 2024 (“RHP”) filed with the Registrar of Companies, Punjab and Chandigarh at Chandigarh (“RoC”).  The Equity Shares issued through the RHP are proposed to be listed on the Stock Exchanges being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” together with BSE, the “Stock Exchanges”). For the purposes of the Offer, the designated stock exchange shall be BSE Limited.

Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited), DAM Capital Advisors Limited and Equirus Capital Private Limited are the Book Running Lead Managers to the Offer.

All capitalized terms referred that have not been defined shall have the same meaning as prescribed in the RHP.

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”), provided that Bank, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion. 

Further, 5% of the Net QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors of which (a) one third portion shall be reserved for applicants with application size of more than 2,00,000 and up to 1,000,000 and (b) two-thirds shall be reserved for applicants with application size of more than 1,000,000, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in other sub-category of the Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders (“RIBs”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. 

Anchor Investors are not permitted to participate in the Anchor Investor Portion of the Offer through the ASBA process. For details, see “Offer Procedure” on page 435.

RHP Link: https://www.nuvama.com/wp-content/uploads/2024/02/Capital-Small-Finance-Bank-Limited-Red-Herring-Prospectus.pdf.ends GNI