Suryoday Small Finance Bank Limited IPO – Mar 17 to 19

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Suryoday Small Finance Bank Limited IPO – Mar 17 to 19

March 15, 2021
Suryoday Small Finance Bank Limited IPO – Mar 17 to 19

Suryoday Small Finance Bank Limited is coming out with a fresh public issue to raise Rs 581 crores from the market.

Key details of the issue:

  • Issue opens – Mar 17 (Wednesday)
  • Issue closes – Mar 19 (Friday)
  • Issue size – Rs 581 crores
  • Price band – Rs 303 to 305 per equity share
  • Bid lot – 49 shares and in multiples thereof
  • Employee discount – Rs 30 per equity share
  • Employee reservation – Up to 5 lakh shares (Rs 14 crores)

And here are some details of the company and further details on the Suryoday Small Finance Bank Limited issue.

Company details:

Suryoday Small Finance Bank Limited (SSFB) was incorporated on Nov 10, 2008. SSFB is among the leading SFBs in India in terms of net interest margins, return on assets, yields and deposit growth, and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020.

SSFB serves customers in the unbanked and under-banked segments in India and promotes financial inclusion. Its average priority sector loans, as a percentage of average adjusted net bank credit for Fiscals 2018, 2019 and 2020 and 9 months ended Dec 31, 2020, were 99.08%, 112.10%, 103.67% and 114.09% respectively.

SSFB commenced its microfinance operations in 2009 and has since expanded them across 13 states and union territories in India. As of Dec 31, 2020, its customer base was 1.44 million and the employee base comprised of 4,770 employees. It operates 554 banking outlets, including 153 unbanked rural centres.

The bank has set up 661 customer service points as additional service or touch points between Apr 1, 2020, and Jan 31, 2021. Its delivery platform also includes partnering with business correspondents for sourcing both asset and liability business.

Its investors include a mix of development finance institutions such as IFC and DEG, private equity investors such as Gaja Capital India AIF Trust (represented by its trustee, Gaja Trustee Co. Pvt. Ltd.), Gaja Capital Fund II Ltd., TVS Entities, ASK Pravi Private Equity Opportunities Fund and Lok Capital Growth Fund and institutional investors, including HDFC Holdings Ltd., HDFC Life Insurance Co. Ltd., IDFC FIRST Bank Ltd. and Kotak Mahindra Life Insurance Co. Ltd.

Issue size: Rs 581 crores

Issue break-up:

  • QIB – 50% of the offer – Rs 284 crores

  • NIB – 15% of the offer – Rs 85 crores

  • RET – 35% of the offer – Rs 198 crores

Listing: NSE and BSE

Registrar: KFin Technologies Private Limited

UPI: All retail applications through brokers are compulsorily in UPI mode

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