Dar Credit and Capital Limited, a financial services company serving low-income and underbanked individuals, made its debut on the NSE SME platform on May 28, 2025, with its shares listing at ₹65.15, marking an 8.58% premium over the IPO issue price of ₹60. However, the initial enthusiasm faced resistance shortly after listing, with the stock slipping to ₹61.90, a decline of nearly 5% from the listing price, due to profit booking by early investors.

IPO Details and Subscription Performance

The Dar Credit and Capital IPO, which was a Book Built Issue, had a total size of ₹25.66 Crores, comprising 42.76 lakh fresh equity shares. The price band for the IPO was set between ₹57 to ₹60 per share, and the issue opened on May 21, 2025, closing on May 23, 2025.

The IPO witnessed stellar demand, with the issue being oversubscribed 106.09 times overall. The subscription breakdown across investor categories was as follows:

• Retail Individual Investors (RIIs): High participation, surpassing expectations.

• Non-Institutional Investors (NIIs): Heavy bidding observed.

• Qualified Institutional Buyers (QIBs): Subscribed via anchor investor allotments.

A notable portion, ₹7.29 Crores, was raised via the Anchor Investor route, with 12.16 lakh shares allotted at the upper band of ₹60 per share.

Company Overview and Business Model

Dar Credit and Capital Limited (DCCL) focuses on providing unsecured and secured MSME loans as well as personal loans. It has built a strong niche by targeting class-four employees, such as sweepers and municipal cleaners, small shopkeepers, and particularly women entrepreneurs in semi-urban and rural regions.

With over 30 years of experience in the lending sector, DCCL operates in states including West Bengal, Rajasthan, Bihar, Jharkhand, and maintains camp offices in Madhya Pradesh and Gujarat. Its head office is in Kolkata, with a regional base in Jaipur.

DCCL uses Vijay software, developed by Qbent Technologies, for managing its loan and risk operations. The company places a strong emphasis on digital onboarding and straight-through processing (STP), allowing for PAN validation, e-KYC, credit bureau integration, and other compliance measures to be efficiently executed.

IPO Objectives

According to the red herring prospectus, DCCL plans to utilize the net proceeds from the IPO towards:

1. Augmenting its capital base – ₹22 Crores to support future loan disbursements.

2. Meeting general corporate purposes.

3. Covering the expenses related to the IPO process.

Market Maker and Issue Management

• Book Running Lead Manager: GYR Capital Advisors Private Limited

• Registrar to the Issue: KFIN Technologies Limited

• Market Maker: SMC Global Securities Limited

Grey Market Premium (GMP) and Investor Sentiment

In the grey market, the IPO saw a premium of around ₹5, suggesting a possible listing price of around ₹65, which accurately matched the actual listing price. It must be noted that GMP is unofficial and speculative, and investors are advised not to rely solely on it for making investment decisions.

Industry Context and Future Prospects

DCCL's market entry is well-timed, coinciding with a strong phase of growth in India’s financial services sector, especially in the NBFC and micro-lending segments. Government-backed initiatives such as MUDRA, collateral-free loans, and priority sector lending are further boosting credit access among low-income populations.

Key Industry Metrics:

• Mutual Fund AUM: ₹53.40 lakh crore (as of March 2024)

• Life Insurance Premiums: US$ 32.04 billion in FY23

• Capital Markets: 40 IPOs in FY23 raised US$ 7.17 billion

DCCL's focus aligns with these growth trends, as it seeks to digitally empower underserved communities with micro-loans and financial education.

IPO Listing Sentiment and Market Response

Despite a positive listing, the stock saw profit booking, which is common for SME IPOs post strong oversubscription. Investors typically look to lock-in gains from high-demand IPOs, especially in volatile market conditions.

That said, analysts suggest the company’s niche focus, experienced management, and scalable digital infrastructure provide strong fundamentals for long-term growth, especially if DCCL can maintain low NPAs and expand its customer base in newer geographies.

Allotment Status: How to Check

Investors who participated in the IPO can check their allotment status on the KFIN Technologies website using:

• Application Number

• PAN

• DP Client ID

Steps to check:

1. Visit the IPO allotment status section.

2. Select “Dar Credit and Capital Limited IPO” from the dropdown.

3. Enter your details and click “Submit”.

The allotment was finalized on May 26, 2025.

Conclusion

Dar Credit and Capital has made a decent debut on the stock exchange with a 9% premium, although it faced some immediate selling pressure. Backed by a strong business model, deep understanding of the underserved market, and a digital-first approach, DCCL is well-positioned to capitalize on the emerging opportunities in India’s micro-lending and MSME credit segments.

Going forward, investors will closely watch its loan book quality, expansion strategy, and financial disclosures to assess sustainability. The listing marks another step forward for financial inclusion-focused NBFCs seeking capital market support for growth.

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