Dar Credit & Capital Limited, a Kolkata-based Non-Banking Financial Company (NBFC), is preparing for an Dar Credit and Capital Limited IPO on the NSE EMERGE platform. The IPO comprises a fresh issue of 50 lakh equity shares, each with a face value of ₹10. As of now, the exact IPO dates, price band, and lot size have not been officially announced.
Dar Credit and Capital Limited IPO Timeline
- IPO Opening Date: May 21, 2025
- IPO Closing Date: May 23, 2025
- Basis of Allotment: May 27, 2025
- Initiation of Refunds: May 28, 2025
- Credit of Shares to Demat: May 29, 2025
- Listing Date: May 30, 2025
Dar Credit and Capital Limited IPO Details
- Issue Type: Book Built Issue
- Face Value: ₹10 per equity share
- Price Band: ₹57 to ₹60 per share
- Lot Size: 2,000 shares
- Minimum Investment: ₹120,000
- Total Issue Size: 42,76,000 equity shares aggregating up to ₹24.37 – ₹25.66 crore
- Fresh Issue: 42,76,000 equity shares
- Offer for Sale (OFS): None
- Listing Exchange: NSE EMERGE
- Retail Allocation: 35% of the net offer
Promoters of Dar Credit and Capital Limited IPO
Dar Credit & Capital Limited (DCCL), established in 1994, is a Kolkata-based Non-Banking Financial Company (NBFC). The company is promoted by Mr. Ramesh Kumar Vijay and Mr. Rajkumar Vijay, who have been instrumental in its growth and operations.
1) Mr. Ramesh Kumar Vijay
- Position: Chairman, Whole-time Director, and Promoter
- Educational Qualifications: Bachelor’s Degree in Commerce from Government College, Tonk, University of Rajasthan; Chartered Accountant; Fellow Member of the Institute of Chartered Accountants of India; Company Secretary from the Institute of Company Secretaries of India.
- Experience: Over 39 years in personal loans, unsecured MSME loans, and secured MSME loans.
- Contributions: As one of the founders, Mr. Vijay oversees operations related to MSME loans, fund mobilization, expansion, corporate planning, budgeting, and performance review.
- Recognitions: Recipient of the SME Leader Award 2018 by the Institute of Chartered Accountants of India; Appreciation Award by Lions Club of Calcutta Brabourne Road; Certificate of Appreciation for contributions in micro-credit and social impact.
2) Mr. Rajkumar Vijay
- Position: Whole-time Director and Promoter
- Educational Qualifications: Bachelor’s Degree in Commerce from Rajasthan University; Master’s Degree in Business Administration from Vinayaka Missions University, Salem, Tamil Nadu.
- Experience: Over 30 years in the personal loan portfolio and NBFC sector.
- Contributions: Co-founder of DCCL, Mr. Vijay oversees operations related to the personal loan portfolio.
Both promoters have been associated with Dar Credit & Capital Limited since its inception on August 10, 1994, and have played pivotal roles in steering the company’s strategic direction and operational excellence.
Company Overview
Dar Credit & Capital specializes in providing financial products such as personal loans, unsecured MSME loans, and secured MSME loans. The company primarily serves low-income individuals, including municipal workers, small-scale shopkeepers, and women entrepreneurs. It operates through branches in West Bengal, Rajasthan, Bihar, and Jharkhand, with additional camp offices in Madhya Pradesh and Gujarat.
Dar Credit and Capital Limited IPO Lot Size
Dar Credit & Capital Limited’s IPO is scheduled to open on May 21, 2025, and close on May 23, 2025. The IPO is a Book Built Issue and will be listed on the NSE EMERGE platform.
| Application | Lots | Shares | Amount |
| Retail (Minimum) | 1 | 2,000 | ₹1,20,000 |
| Retail (Maximum) | 1 | 2,000 | ₹1,20,000 |
| HNI (Minimum) | 2 | 4,000 | ₹2,40,000 |
Dar Credit and Capital Limited IPO Promoter Holding
As of the latest available information, the promoter holding in Dar Credit & Capital Limited is as follows:
Promoter Shareholding
| Shareholder | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Mr. Ramesh Kumar Vijay | 19,50,866 | 19.51% |
| Mr. Rajkumar Vijay | 3,22,133 | 3.22% |
| Mrs. Rakshita Vijay | 9,85,066 | 9.85% |
| Total Promoter Holding | 32,58,065 | 32.58% |
About Dar Credit and Capital Limited
Dar Credit & Capital Limited (DCCL) is a Kolkata-based Non-Banking Financial Company (NBFC) established in 1994. The company is registered under the Companies Act, 1956, and holds an NBFC license from the Reserve Bank of India (RBI) .
Company Overview
- Incorporation: 1994
- Registered Office: Kolkata, West Bengal
- Regional Office: Jaipur, Rajasthan
- Regulatory Status: Registered NBFC under RBI
- Credit Rating: CARE Ratings: BBB-; Stable
- Promoters: Mr. Ramesh Kumar Vijay (Chairman) and Mr. Rajkumar Vijay (Whole-time Director)
- CEO: Mr. Jayanta Banik
Business Model & Services
DCCL specializes in providing financial services to underserved and low-income segments, particularly:
- Personal Loans: Primarily to Class IV municipal employees such as cleaners and sweepers
- Micro Loans: Targeting small-scale shopkeepers, vendors, and women entrepreneurs
- Unsecured MSME Loans: For small and medium enterprises
- Secured MSME Loans: Backed by property mortgages
The company operates in urban, semi-urban, and rural areas across several Indian states, including West Bengal, Rajasthan, Bihar, Jharkhand, Madhya Pradesh, Gujarat, and Chhattisgarh .
Operational Footprint
- States Covered: 7
- Branches/Camp Offices: 35 locations
- Total Customers: Approximately 24,608
- Employees: 224
Mission & Vision
DCCL aims to alleviate financial distress among low-income individuals by providing efficient financial services. The company’s vision is to enhance the quality of life for customers in urban, semi-urban, and rural areas lacking access to formal financial institutions, positioning itself as a financially strong, ethical, and socially responsible finance institution.
Strategic Partnerships
DCCL has established business correspondent arrangements with:
- Small Industries Development Bank of India (SIDBI): For unsecured MSME loans up to ₹2 lakhs
- ESAF Small Finance Bank: For unsecured and secured MSME loans ranging from ₹2 lakhs to ₹10 lakhs
Dar Credit and Capital Limited Financial Information
Here is a comprehensive overview of Dar Credit & Capital Limited financial performance for the fiscal year ending March 31, 2024:
Financial Summary
| Metric | 2023–2024 | 2022–2023 | Change (%) |
|---|---|---|---|
| Total Income | ₹32.86 crore | ₹25.53 crore | +28.7% |
| Profit Before Tax (PBT) | ₹4.95 crore | ₹3.68 crore | +34.5% |
| Profit After Tax (PAT) | ₹3.68 crore | ₹2.52 crore | +46.0% |
| Net Worth | ₹65.34 crore | ₹66.35 crore | -1.5% |
| Assets Under Management (AUM) | ₹181.57 crore | ₹126.36 crore | +43.7% |
| Capital Adequacy Ratio (CAR) | 36.79% | 54.90% | -18.1 pp |
| Tier-I CAR | 32.64% | 54.87% | -22.2 pp |
| Gearing Ratio | 2.51x | 1.93x | +30.1% |
| Return on Total Assets (ROTA) | 1.70% | 1.52% | +0.18 pp |
Key Financial Highlights
- Revenue Growth: The company’s total income increased by 28.7% year-over-year, reaching ₹32.86 crore in FY 2023–24.
- Profitability: Profit After Tax (PAT) rose by 46.0% to ₹3.68 crore, indicating improved operational efficiency.
- Asset Expansion: Assets Under Management (AUM) grew by 43.7%, reflecting the company’s expanding loan portfolio.
- Capital Adequacy: The Capital Adequacy Ratio (CAR) decreased to 36.79%, primarily due to increased borrowings to support growth.
- Leverage: The gearing ratio increased to 2.51x, indicating higher leverage to fund expansion.
Additional Insights
- Loan Portfolio Composition (as of September 30, 2024):
- Personal Loans: 44.46%
- Micro Loans: 40.12%
- Unsecured SME Loans: 2.65%
- Secured MSME Loans: 12.76%
- Geographical Concentration: Approximately 53% of the loan portfolio is concentrated in West Bengal, with 27% in Rajasthan, highlighting regional exposure.
- Asset Quality: The Gross Non-Performing Assets (GNPA) ratio stood at 0.55%, and the Net NPA (NNPA) at 0.07% as of March 31, 2024, indicating strong asset quality.
Key Performance Indicator (KPI) of Dar Credit and Capital Limited IPO
Here are the Key Performance Indicators (KPIs) of Dar Credit & Capital Limited in table form with only the values:
| KPI | Value (FY 2023–24) |
|---|---|
| Total Income | ₹32.86 crore |
| Profit After Tax (PAT) | ₹3.68 crore |
| Net Worth | ₹65.34 crore |
| Assets Under Management (AUM) | ₹181.57 crore |
| Capital Adequacy Ratio (CAR) | 36.79% |
| Tier-I Capital Ratio | 32.64% |
| Gearing Ratio | 2.51x |
| Return on Total Assets (ROTA) | 1.70% |
| Gross NPA (GNPA) | 0.55% |
| Net NPA (NNPA) | 0.07% |
Objects of the Issue of Dar Credit and Capital Limited IPO
1) Augmentation of Capital Base
- The primary objective of the IPO is to strengthen the company’s capital base. By raising fresh equity funds, Dar Credit & Capital Limited aims to support its business expansion plans, enhance its lending capacity, and improve its financial flexibility. This capital infusion will help the company maintain regulatory capital adequacy norms and sustain its growth in loan disbursements across various segments.
2) Meeting General Corporate Purposes
- A portion of the proceeds will be utilized for general corporate purposes. This could include activities such as working capital requirements, business development initiatives, technology upgradation, operational improvements, and other routine business expenses. These measures are intended to ensure smooth functioning and scalability of the company’s operations.
3) Covering Issue-related Expenses
- Part of the IPO proceeds will be allocated to meet the expenses incurred during the public issue process. This includes underwriting fees, legal fees, registrar and depository charges, printing and distribution costs of the offer documents, advertisement and marketing expenses, and other miscellaneous expenses related to the IPO.
Strengths of Dar Credit & Capital Limited IPO
1) Experienced Management Team
- The company is led by promoters with extensive experience in the financial sector. Mr. Ramesh Kumar Vijay and Mr. Rajkumar Vijay have over three decades of experience, while CEO Mr. Jayanta Banik brings more than 30 years of expertise in finance and microfinance .
2) Strong Asset Quality
- As of March 31, 2024, Dar Credit reported a Gross Non-Performing Assets (GNPA) ratio of 0.55% and a Net NPA (NNPA) ratio of 0.07%, indicating robust asset quality .
3) Improved Profitability
- The company has shown consistent growth in profitability, with a Return on Total Assets (ROTA) of 1.70% in FY 2023–24, up from 1.52% in the previous year .
4) Diversified Loan Portfolio
- Dar Credit offers a range of financial products, including personal loans, micro loans, and MSME loans, catering to underserved segments such as municipal employees and small-scale entrepreneurs .
5) Geographical Expansion
- The company has expanded its operations across multiple states, including West Bengal, Rajasthan, Bihar, Jharkhand, Madhya Pradesh, Gujarat, and Chhattisgarh, reducing dependence on a single market.
Risks of Dar Credit & Capital Limited IPO
1) High Geographical Concentration
- As of September 30, 2024, approximately 53% of the company’s loan portfolio is concentrated in West Bengal, and 27% in Rajasthan, exposing it to regional economic fluctuations and political risks .
2) Exposure to Unsecured Lending
- A significant portion of Dar Credit’s portfolio comprises unsecured loans, which are inherently riskier and more susceptible to defaults, especially during economic downturns .
3) Moderate Asset Quality Metrics
- While the company maintains relatively low NPA ratios, the increasing GNPA in certain segments, such as micro loans, indicates potential challenges in asset quality .
4) Limited Scale of Operations
- Despite a long operational history, Dar Credit remains a relatively small-sized NBFC with an Assets Under Management (AUM) of ₹181.57 crore as of March 31, 2024, limiting its market influence and scalability .
5) Regulatory and Operational Risks
- The company’s operations are subject to regulatory changes and operational challenges, including delays in EMI collections and administrative issues, which could impact financial performance .
Dar Credit and Capital Limited IPO Contact Details
Registered Office (Kolkata)
- Address: 206, A.J.C. Bose Road, Business Tower, Unit – 6B, 6th Floor, Kolkata, West Bengal, India – 700017
- Phone: +91-33-40646495 / 22873355
- Email: info@darcredit.com
Regional Office (Jaipur)
- Address: 210-213, Shri Gopal Tower, Ashok Marg, C-Scheme, Jaipur, Rajasthan, India – 302001
- Phone: +91-141-2366778 / 4033778
- Mobile: +91-86192 96633
- Email: rajkumarvijay@darcredit.com
Investor Relations & Grievances
- Contact Person: Company Secretary & Compliance Officer
- Email: co.secretary@darcredit.com
- Phone: +91-33-40646495
Debenture Trustee
- Trustee: IDBI Trusteeship Services Limited
- Address: Asian Building, Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai – 400001, Maharashtra
- Phone: +91-7208121452
- Email: gaurav.jeswani@idbitrustee.com
- Website: idbitrustee.comDar Credit+3
Nodal Officer
- Name: Mr. Ramesh Kumar Vijay
- Email: chairman@darcredit.com
- Phone: +91-33-22873355
Dar Credit and Capital Limited IPO Registrar
Registrar to the Issue (RTA)
KFin Technologies Limited
Selenium Tower – Gachibowli, Financial District, Nanakramguda, Hyderabad – 500 032, Telangana, India
- Phone: +91 40 6716 2222
- Email: dccl.ipo@kfintech.com
- Website: www.kfintech.com
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