Development Credit Bank IPO
Development Credit Bank IPO — date, price band, lot size & details 2006
Development Credit Bank listed on 27 Oct 2006 at ₹35, 34.6% above the ₹26 issue price.
Development Credit Bank is a private sector bank, converted from a co-operative bank, whose promoter is the Aga Khan Fund for Economic Development. It made losses in the years before its IPO.
Stock price
Development Credit Bank is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 12 November.
- Open 29 Sep 2006
- Close 06 Oct 2006
- Allotment 18 Oct 2006
- Refund/credit TBA
- Listing 27 Oct 2006
Issue summary
The terms of the offer, as filed.
| IPO Dates | 29 Sep to 6 Oct, 2006 |
|---|---|
| Price Band | ₹22 – ₹26 |
| Face Value | ₹10 |
| Lot Size | 250 Shares |
| Issue Size | ₹185.9 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | MUFG Intime India Private Limited |
| Min Investment | ₹ 6,500 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 250 shares at the ₹26 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 250 | ₹6,500 |
| Retail (max) | 30 | 7,500 | ₹1,95,000 |
| S-HNI (min) | 31 | 7,750 | ₹2,01,500 |
| S-HNI (max) | 153 | 38,250 | ₹9,94,500 |
| B-HNI (min) | 154 | 38,500 | ₹10,01,000 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 4
- 01AKFED, its promoter, held 57.79% before the issue.
- 02The whole Rs 185.90 crore issue was fresh capital for the bank.
- 03It had 1277 employees as at 30 June 2006.
- 04Net worth was Rs 139.31 crore in FY2006.
Risks · 5
- 01It made losses of Rs 9.78 crore in FY2003, Rs 43.19 crore in FY2004, Rs 72.99 crore in FY2005 and Rs 80.59 crore in FY2006.
- 02Total income fell from Rs 441.65 crore in FY2004 to Rs 357.43 crore in FY2006.
- 03Total assets shrank from Rs 5,275.02 crore in FY2004 to Rs 3,716.84 crore in FY2006.
- 04Net worth fell from Rs 187.83 crore in FY2004 to Rs 139.31 crore in FY2006 because of losses.
- 05AKFED's holding fell from 57.79% before the issue to 29.8% after it.
Three years of numbers
All figures in ₹ crore, as reported in the Development Credit Bank offer document.
| Metric | 31 Mar 2006 | 31 Mar 2005 | 31 Mar 2004 | 31 Mar 2003 |
|---|---|---|---|---|
| Assets | 3,716.84 | 4,626.34 | 5,275.02 | 4,352.17 |
| Total Income | 357.43 | 394.50 | 441.65 | 431.59 |
| Profit After Tax | -80.59 | -72.99 | -43.19 | -9.78 |
| NET Worth | 139.31 | 166.31 | 187.83 | 185.92 |
| Reserves and Surplus | 88.05 | 129.26 | 151.42 | 184.15 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Development Credit Bank RHP.
Where the money goes
₹198.25 Cr of the issue is earmarked to named objects.
About the company
It offers commercial banking products and services such as working capital finance, overdrafts and cash credit to corporate customers, along with retail banking.
As at 30 June 2006 it had 1277 employees. As a bank it had to keep a minimum capital adequacy ratio of 9% of its risk-weighted assets.
The IPO was Rs 185.90 crore and was entirely a fresh issue at Rs 26, the top of the Rs 22 to Rs 26 band. The money was to add to the bank's capital base for future capital adequacy needs.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Development Credit Bank IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Axis Capital
260 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
JM Morgan Stanley Pvt. Ltd
22 issues handledBest listing: Infrastructure Development Finance Co (+76.5%). Weakest: House of Pearl Fashions (-9.1%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Development Credit Bank?
The current Grey Market Premium is ₹0.
What is the Development Credit Bank IPO price band?
₹22 to ₹26, on a face value of ₹10.
When is the allotment?
The basis of allotment is 18 October 2006, with listing on 27 October 2006.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — MUFG Intime India Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
