Dar Credit and Capital Limited primarily focuses on providing credit solutions to low-income individuals, especially those employed in class-four (Group D) roles such as cleaners, sweepers, and peons working in municipal settings. The company also extends credit facilities to small-scale shopkeepers and vendors, placing a strong emphasis on empowering women entrepreneurs by facilitating easier access to financial services.

IPO Overview
Dar Credit and Capital is launching a Book Built Issue IPO with a fresh issue of 42.76 lakh shares, amounting to ₹25.66 crores. The IPO subscription opens on May 21, 2025, and closes on May 23, 2025. The company’s shares will be listed on the NSE SME platform, with an allotment date around May 26, 2025, and tentative listing by May 28, 2025.

The share price band is fixed between ₹57 and ₹60 per equity share. At the upper price band of ₹60, the company’s market capitalization will be approximately ₹85.65 crores. The IPO lot size is set at 2,000 shares, requiring a minimum retail investment of ₹1,20,000. High-Net-Worth Individuals (HNIs) must invest in at least two lots, i.e., 4,000 shares or ₹2,40,000.

Lead Managers and Registrars
GYR Capital Advisors Private Limited is the book running lead manager for this IPO. KFIN Technologies Limited has been appointed as the registrar to the issue, while SMC Global Securities Limited acts as the Market Maker.

Grey Market Premium (GMP) and Price Expectations
The Grey Market Premium for Dar Credit and Capital IPO is currently estimated at ₹5, implying an expected listing price of around ₹65, which translates to an 8.33% premium over the upper price band. It is important to note that GMP reflects unregulated trading and should be considered for informational purposes only, not as a reliable indicator of listing gains.

Anchor Investors Participation
The company has successfully raised ₹7.29 crores from anchor investors, who were allotted 12.16 lakh shares at the upper price band of ₹60 per share. Anchor investors' participation is crucial for building market confidence in the IPO and indicates institutional interest.

Financial Performance and Key Metrics
Dar Credit and Capital has shown steady revenue growth, with revenues reaching ₹31.03 crores for the nine months ended December 31, 2024, compared to ₹33.01 crores in the full fiscal year 2024. The EBITDA margin has improved consistently, standing at ₹21.58 crores for the same period. Profit after tax has also increased to ₹4.92 crores for the nine months ended December 31, 2024, reflecting the company’s growing profitability.

Key financial ratios include:

• Pre-issue EPS (FY24): ₹3.97

• Post-issue EPS (FY24): ₹2.78

• Pre-issue P/E ratio: 15.11x

• Post-issue P/E ratio: 21.59x (Industry average P/E is 6.00x)

• ROCE FY24: 9.22%

• ROE FY24: 6.17%

• RoNW FY24: 5.64%

These ratios suggest that the IPO is priced on the higher side compared to industry peers.

Promoter and Management
Mr. Ramesh Kumar Vijay, the Promoter, Chairman, and Whole Time Director, brings nearly four decades of experience in personal loans and MSME financing. He is a Chartered Accountant and Company Secretary by qualification, which underpins the company’s professional management approach.

Use of IPO Proceeds
The net proceeds of the IPO will primarily be utilized to augment the company’s capital base with ₹22 crore allocated for this purpose. The remaining funds will be used to meet general corporate expenses and issue-related costs, supporting the company’s growth strategy and operational stability.

How to Check IPO Allotment Status
Dar Credit and Capital IPO allotment will be declared on or about May 26, 2025. Investors can check their allotment status online via the registrar’s website by selecting the IPO, entering their application number, PAN, or DP client ID, and submitting the details.

Dar Credit and Capital IPO Subscription Status
The IPO subscription opens on May 21, 2025. Investors can track real-time subscription status during the offer period to make informed investment decisions.

IPO Review and Recommendation
Dar Credit and Capital caters to a niche segment by providing financial inclusion to low-income individuals and micro-entrepreneurs, especially women, which is a positive social impact factor. However, the IPO is priced at a premium relative to the company’s financial performance and industry benchmarks.

The Grey Market Premium indicates a possible 8.33% listing gain, but considering the fully priced valuation and high P/E ratios, investors are advised to approach this IPO cautiously. For those looking for listing gains, this IPO may not be ideal.

The Upcoming IPOs in this week and coming weeks are Blue Water Logistics, Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries, Wagons Learning.

The Current active IPO are Victory Electric Vehicles International, Borana Weaves.

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