Suryoday Small Finance Bank IPO: Opens today; find key details before investing

Suryoday Small Finance Bank IPO: Suryoday Small Finance Bank will launch its initial public offering (IPO) on Wednesday, March 17, 2021. The price band for the offer has been fixed at Rs 303-305 per equity share. At the upper end of the price band, the IPO is expected to fetch Rs 582.34 crore to the bank.

The public issue will close on Friday, March 19, 2021. Retail investors can buy shares in lot sizes of 49 shares up to a maximum of 13 lots. The employees of Suryoday Small Finance Bank will get a discount of Rs 30 per share in the IPO.

Suryoday Small Finance Bank IPO comprises of offer for sale of Rs 333.76 crore and a fresh issue of Rs 248.58 crore. Proceeds from the fresh issue will be used towards augmenting the bank's tier-1 capital base to meet the bank's future capital requirements and proceeds received from the offer for sale will not form part of net proceeds.

Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets are the book running lead managers to the issue, while KFintech is the registrar for the issue.

Suryoday Small Finance Bank IPO allotment date has been fixed on March 24, 2021, and the tentative Suryoday Small Finance Bank IPO listing date is March 30, 2021. Equity shares will get listed on the BSE and the National Stock Exchange.

Besides, the bank on Tuesday said that it has raised Rs 170 crore by allotting 55.77 lakh equity shares to anchor investors at Rs 305 per share. The anchor investors include Axis Mutual Fund, ICICI Prudential, SBI Life, ICICI Lombard and Goldman Sachs among others.

Suryoday Small Finance Bank was founded by Baskar Babu Ramachandran. It has a presence in 12 states and union territories across the country and 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 in FY20. It started operations as an SFB in January 2017. Before that, it operated as an NBFC (non-banking finance company) – MFI (micro-finance institution).

The bank has set up 661 customer service points (CSPs) as additional service or touchpoints during April 2020 and January 2021 and intends to continue to expand reach through the CSP model.

Its operations are predominantly in urban and semi-urban locations due to greater income earning capabilities and employment opportunities in such areas compared with rural regions.

Ujjivan Small Finance Bank, CreditAccess Grameen, Bandhan Bank and AU Small Finance Bank are some listed peers of Suryoday Small Finance Bank.