Dar Credit IPO GMP

May 28, 2025 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Dar Credit and Capital Limited, established in 1994 and headquartered in Kolkata, is a Reserve Bank of India-registered NBFC specializing in personal loans, unsecured and secured MSME loans. The company focuses on providing credit to low-income individuals, including municipal workers and small shopkeepers, with a strong emphasis on financial inclusion and women entrepreneurship. The Dar Credit and Capital IPO opens on May 21, 2025, aiming to raise funds to strengthen its capital base and support future growth.

₹10

Latest IPO GMP

Last updated on 27 May 2025 19.10

₹60

IPO Offer Price

*cut off price

₹65.15

Listing Price

Listing Date 28/05/2025

Expert Opinions

The Dar Credit IPO is entering the market amid cautious optimism, driven by India’s growing NBFC sector and government initiatives supporting MSME financing. Dar Credit’s strengths include its focus on underserved borrowers-particularly low-income individuals and small businesses-and a CARE BBB- rating, reflecting moderate financial stability. The company reported a 29% revenue increase to ₹32.04 crore and a 35% PAT jump to ₹3.96 crore in FY2024, alongside expanding assets under management (AUM) to ₹181.57 crore.

However, risks include a high debt-to-equity ratio of 2.51, exposure to asset quality risks in newer markets, and competition from larger lenders. Valuation metrics for FY2024 include a Return on Equity (ROE) of 6.17% and Return on Capital Employed (ROCE) of 9.22%, indicating modest efficiency, while the Net Asset Value (NAV) stands at ₹65.25 per share. Long-term prospects hinge on effective debt management and geographic diversification, though investors should weigh the company’s niche focus against operational risks in a competitive lending landscape.

Investor Considerations

Dar Credit and Capital IPO has demonstrated steady financial performance, with FY2024 revenue rising to ₹33.01 crore and profit after tax reaching ₹3.97 crore, supported by a strong EBITDA margin of 66.40% and a PAT margin of 12.38%. The company’s fundamentals show a healthy capital adequacy ratio, but a relatively high debt/equity ratio of 2.51 signals moderate leverage. The NBFC sector outlook for 2025 remains positive, driven by rising credit demand, digital advancements, and supportive government policies, though growth is expected to moderate to 13–15% amid tighter regulations and asset quality concerns.

The IPO’s FY2024 valuation reflects a price to book value of about 0.92, Return on Net Worth (RoNW) of 6.08%, indicating reasonable pricing for the sector. Growth prospects are anchored in expanding MSME and personal loan portfolios, but key risks include asset quality in new markets and competition from larger players. Short-term investors may see stable returns, while long-term gains depend on prudent debt management and sustained asset quality.