Dar Credit & Capital Ltd IPO

The IPO opens on 21 May 2025 & closes on 23 May 2025.

Dar Credit & Capital Limited was originally incorporated as a Public Limited Company vide Certificate of Incorporation dated August 10, 1994 and Certificate of Commencement of Business dated August 16, 1994 was issued by Registrar of Companies, West Bengal. The Company offers three primary types of financial products: (i) Personal Loans, (ii) Unsecured MSME Loans, and (iii) Secured MSME Loans. It specializes in offering credit solutions to low-income individuals, particularly those in class-four (Group D) employment role such as cleaners, sweepers, and peons working in municipalities. It also extends credit to small-scale shopkeepers, traders, manufacturers, persons engaged in the Agri & Agri allied business and vendors, with a strong focus on empowering women entrepreneurs. With extensive experience in the financing and investment sector in India, Company has built a deep understanding of the market since its inception. In addition to the headquarters in Kolkata and regional office in Jaipur, DCCL operates through its branch offices across West Bengal, Rajasthan, Bihar and Jharkhand also Camp Offices are set up in the States of Madhya Pradesh and Gujarat. Company obtained Certificate of Registration from Reserve Bank of India (RBI) as a Non-Banking Finance Company on June 28, 2007. Over the past 30 years, Company has developed a profound understanding of the financial needs of underbanked and underserved customers. DAR Holdings Private Limited got merged with the Company in 2014. Similarly, ABAN Holdings Private Limited was merged with the Company in 2018. Further, Debentures of the Company got listed on BSE Limited since February 17, 2021. Company has received 'CARE BBB-' Stable Ratings on December 23, 2023. The loan management system plays a crucial role in efficiently managing our loan portfolio, providing vital support for decision making and daily operations. It encompasses a wide range of functions, including asset management, core financial activities, risk management, document processing, and customer service throughout the entire loan lifecycle. To fulfill operational requirements, Company rely on Vijay software, developed by Qbent Technologies Private Limited, as a primary financial solution. This software streamlines loan management processes, in collections management, tracking field staff, and reporting collection data. Company came up with the initial public offering of issuing 42,76,000 fresh issue of equity shares of Rs 10 each by raising funds aggregating to Rs 26 Crore in May, 2025.

Dar Credit & Capital Ltd IPO will close on 23 May 2025.

<ul><li>Experienced Promoters and Management Team.</li><li>Efficient operational team.</li><li>Consistent financial performance.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Ramesh Kumar Vijay</td> <td>2270866</td> <td>22.71</td> <td>2270866</td> <td>15.91</td> </tr> <tr> <td>2</td> <td>Rajkumar Vijay</td> <td>322133</td> <td>3.22</td> <td>322133</td> <td>2.22</td> </tr> <tr> <td>3</td> <td>Rakshitha Vijay</td> <td>1025722</td> <td>10.26</td> <td>1025722</td> <td>7.18</td> </tr> <tr> <td>4</td> <td>Mrs. Kusum Vijay</td> <td>106456</td> <td>1.06</td> <td>106456</td> <td>0.75</td> </tr> <tr> <td>5</td> <td>Nikita Vijay</td> <td>868728</td> <td>8.69</td> <td>868728</td> <td>6.09</td> </tr> <tr> <td>6</td> <td>Tanvee Vijay</td> <td>868450</td> <td>8.68</td> <td>868450</td> <td>6.08</td> </tr> <tr> <td>7</td> <td>Ramesh Kumar Vijay & Others (H</td> <td>880400</td> <td>8.8</td> <td>880400</td> <td>6.17</td> </tr> <tr> <td>8</td> <td>Karan Vijay</td> <td>985456</td> <td>9.85</td> <td>985456</td> <td>6.9</td> </tr> <tr> <td>9</td> <td>Kamla Gandhi</td> <td>466667</td> <td>4.67</td> <td>466667</td> <td>3.27</td> </tr> <tr> <td>10</td> <td>Vitika Vijay</td> <td>222222</td> <td>2.22</td> <td>222222</td> <td>1.56</td> </tr> <tr> <td>11</td> <td>Tanay Vijay</td> <td>55556</td> <td>0.56</td> <td>55556</td> <td>0.39</td> </tr> <tr> <td>12</td> <td>RR Family Trust</td> <td>933333</td> <td>9.33</td> <td>933333</td> <td>6.54</td> </tr> <tr> <td>13</td> <td>Primerose Foundation</td> <td>829000</td> <td>8.29</td> <td>829000</td> <td>5.81</td> </tr> <tr> <td>14</td> <td>Ashok Kumar Gandhi</td> <td>11122</td> <td>0.11</td> <td>11122</td> <td>0.08</td> </tr> <tr> <td>15</td> <td>Niranjan Lal Vijay</td> <td>1667</td> <td>0.02</td> <td>1667</td> <td>---</td> </tr> </tbody> </table>

<ul><li>Its business is vulnerable to interest rate risk, and volatility in interest rates could have an adverse effect on its net interest income and net interest margin, thereby affecting its results of operations.</li><li>Its gross loan portfolio is derived from loans originating from various state, and any adverse developments in these regions may have an adverse effect on its business, results of operations, financial condition and cash flows.</li><li>The NBFC industry in India faces certain risks due to the category of customers that it services, which are not generally associated with other forms of lending. As a result, we may experience increased levels of nonperforming assets and related provisions and write-offs that may adversely affect its business, financial condition and results of operations.</li><li>The company depends on the accuracy and completeness of information provided by its borrowers. Any misleading information provided to it by the company borrowers may affect its judgement of their credit worthiness, which could have an adverse effect on its business, cash flows, results of operations, financial condition.</li><li>Rating given by Care Ratings "CARE BBB-" is considered to have moderate degree of safety, therefore, in future it may give Challenges to the business.</li><li>The proper functioning of its online platform and technology infrastructure is essential to its business. Any disruption to its IT systems and infrastructure could materially affect its ability to maintain the satisfactory performance of its platform and deliver consistent services to its users.</li><li>Its top two states contribute the company's major revenue for the period ended December 31, 2024 and year ended 31st March 2024, 2023, 2022. Any loss of business from one or more of these states may adversely affect its revenues and profitability.</li><li>If the company is unable to manage its growth effectively, its business and reputation could be adversely affected. Furthermore, its may not be able to sustain the growth rates the company has had in the past.</li><li>Its non-convertible debentures are listed on the BSE and the company is subject to rules and regulations with respect to such listed non-convertible debentures. If the company fails to comply with such rules and regulations, its may be subject to certain penal actions, which may have an adverse effect on its business, results of operations, financial condition and cash flows.</li><li>Its credit monitoring and risk management policies may not be adequate to control its Non- Performing Assets which could adversely affect its financial conditions and results of operations.</li><li>Its inability to meet the company obligations under its financing agreements and instruments could adversely affect its business, results of operations, financial condition and cash flows.</li><li>Certain of its statutory and regulatory records are lost. The company cannot assure you that no legal proceedings or regulatory actions will be initiated against the Company in the future in relation to such missing corporate records.</li><li>The company requires certain approvals and licenses in the ordinary course of business and the failures to successfully obtain/renew such registrations would adversely affect its operations, results of operations and financial condition.</li><li>The company has had negative cash flows from Operating, investing and financing activities in the past and as a consequent net decrease in cash and cash equivalents in some of the recent years.</li><li>Its business could be adversely affected if the company is unable to maintain its capital to risk weighted assets ratio.</li><li>The company has certain contingent liabilities, which, if materialized, may affect its financial condition and results of operations.</li><li>Its may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.</li><li>Any non-compliance or delays in EPF Return Filings may expose it to penalties from the regulators.</li><li>Any non-compliance or delays in GST Return Filings may expose it to penalties from the regulators.</li><li>The Company, its Directors and its Promoters are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before various forums and regulatory authorities. Any adverse decision may make it liable to liabilities/penalties and may adversely affect its reputation, business and financial status.</li><li>As an NBFC, the company is also subject to periodic inspections by the Reserve Bank of India, and any noncompliance with observations made by the Reserve Bank of India during these inspections could expose it to penalties and restrictions.</li><li>Any non-compliance with mandatory anti-money laundering and know your customer regulations could expose it to additional liability and harm its business and reputation.</li><li>As an NBFC, the company is also subject to periodic inspections by the Reserve Bank of India, and any noncompliance with observations made by the Reserve Bank of India during these inspections could expose it to penalties and restrictions.</li><li>Its success depends, in large part, upon the company management team and skilled personnel and on its ability to attract and retain such persons. Additionally, failures to train and motivate its employees may lead to an increase in the company employee attrition rates, and its results of operations could be adversely affected as a result of any disputes with its employees.</li><li>Its Promoters and Directors may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from our Company. Certain of our Promoters and Director may have interest in entities, which are in businesses similar to ours and this may result in conflict of interest with us.</li><li>Its reliance on financial arrangements is predominantly vested on banks and financial institutions. Failures to repay a loan and interest may result in adverse consequences.</li><li>Its Promoters and promoter group have significant controlling interest over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder. Further they have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.</li><li>The average cost of acquisition of Equity Shares by its Promoters is lower than the issue price.</li><li>If the company fails to maintain an effective system of internal controls, its may not be able to successfully manage or accurately report its financial risk.</li><li>The utilization of the Net Proceeds from the Issue will be monitored by the Company's Audit Committee, not an independent external audit agency, which would be adversely affected.</li><li>Business operation and stability depends on many factors, its may not be able to effectively implement its business and growth strategy.</li><li>If the company is unable to continue to innovate or if the compnay fails to adapt to changes in its industry, the company business, financial condition, cash flows and results of operations would be adversely affected.</li><li>Its insurance policy may not be adequate to cover all the losses which a business could incur. Any inability to maintain adequate cover from material adverse incidents may adversely affect its operation and profitability.</li><li>Its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.</li><li>The Company's future funding requirements, in the form of further issue of capital or other securities and/or loans that might be availed by it, may turn out to be prejudicial to the interest of the shareholders depending upon the terms and conditions on which they are raised.</li><li>The company has issued Equity Shares during the last twelve months at a price that may be lower than the Issue Price.</li><li>There are certain instances of delays in payment of statutory dues by it. Any further delay in or non-payment of statutory dues may attract financial penalties from the respective government authorities and in turn may have an adverse impact on its financial condition and cash flows.</li><li>The company has presented, in this Red Herring Prospectus, certain financial measures and other selected statistical information relating to its financial condition and operations which are prepared under or required by Indian GAAP. These financial measures and statistical information may vary from any standard methodology that is applicable across the financial services industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other financial services companies.</li><li>The Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue.</li><li>The trading volume and market price of its Equity Shares may be volatile post the Issue.</li><li>Qualified Institutional Buyers ("QIBs") and Non-Institutional Investors are not permitted to withdraw or lower their Bids (either quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li><li>Any future issuance of Equity Shares, or convertible securities or other equity linked instruments by it may dilute your shareholding and sale of Equity Shares by the Promoters, members of its Promoter Group and other significant shareholders may adversely affect the trading price of the Equity Shares.</li><li>Significant differences exist between Indian Accounting Standards and other accounting principles, such as United States Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), which investors may consider material to their assessment of its financial condition.</li><li>Rights of shareholders of the Company under Indian law may be more limited than under the laws of other jurisdictions.</li><li>Under Indian law, foreign investors are subject to investment restrictions that limit its ability to attract foreign investors, which may adversely affect the trading price of the Equity Shares.</li><li>The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares after the Issue.</li><li>Pursuant to listing of the Equity Shares, its may be subject to pre-emptive surveillance measures such as the Additional Surveillance Measures ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in the order to enhance market integrity and safeguard the interest of the investors.</li><li>Its ability to raise foreign currency funds may be constrained by Indian law.</li><li>Requirements of being a listed company may strain its resources.</li><li>Investors may be subject to Indian taxes arising its of income arising on the sale of the Equity Shares.</li><li>The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Furthermore, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.</li><li>There is no guarantee that the Equity Shares will be listed, or continue to be listed, on the Stock Exchanges in a timely manner, or at all, and such that the prospective investors will not be able to immediately sell their Equity Shares.</li><li>The determination of the Price Band is based on various factors and assumptions and the Issue Price of the Equity Shares may not be indicative of the market price of the Equity Shares upon listing on the Stock Exchanges. Furthermore, the current market price of some securities listed pursuant to initial public offerings which were managed by the Book Running Lead Managers in the past, is below their respective issue prices.</li><li>Currency exchange rate fluctuations may affect the value of the Equity Shares.</li><li>Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.</li></ul>

The Issue type of Dar Credit & Capital Ltd is Book Building - SME.

The minimum application for shares of Dar Credit & Capital Ltd is 2000.

The total shares issue of Dar Credit & Capital Ltd is 4276000.

Initial public offer of upto 42,76,000 equity shares of face value of Rs. 10/- each (&quot;the Equity Shares&quot;) of Dar Credit &amp; Capital Limited (the "Company" or "DCCL" or "Issuer") at an issue price of Rs. 60 per equity share (Including a Share Premium of Rs. 50 per Equity Share) for cash, aggregating up to Rs. 25.66 crores ("Public Issue") out of which upto 2,16,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 60 per equity share for cash, aggregating Rs. 1.30 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. net issue of upto 40,60,000 equity shares of face value of Rs. 10/- each, at an issue price of&nbsp; Rs. 60 per equity share for cash, aggregating up to Rs. 24.36 crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 29.95% and 28.44% respectively of the post-issue paid-up equity share capital of the company.<br /> <br /> <br />