Suryoday Small Finance Bank on Friday set a price a band of Rs 303-305 a share for its initial share-sale, which will open for public subscription on March 17.
The IPO consists of a fresh issue of Rs 250 crore and an offer for sale (OFS) of up to Rs 350 crore by existing shareholders.
The three-day public issue would conclude on March 19 and bidding for anchor investors would be open on March 16.
Those offering shares through OFS include International Finance Corporation, Gaja Capital Fund II, DWM (International) Mauritius, HDFC Holdings, IDFC First Bank, Americorp Ventures, Kotak Mahindra Life Insurance and Gaja Capital India AIF Trust.
The proceeds from the fresh issue will be utilised towards augmenting the bank's tier-1 capital for future growth, its Managing Director and Chief Executive Officer Baskar Babu Ramachandran said.
Post the issue, the promoters stake will be reduced from current 29.2 per cent to 27.5 per cent.
In the pre-IPO round, the lender raised Rs 152 crore from investors, including SBI Life Insurance and Axis Mutual Fund.
The book running lead managers to the issue are Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets.
The bank started its operations in January 2017. As of December 31, 2020, the lender's gross loan portfolio stood at Rs 3,908.22 core and deposits stood at Rs 3,343.84 crore. Retail deposits comprise 72.40 per cent of the bank's total deposits.
In the first nine months of the current fiscal, it reported a profit after tax of Rs 54.86 crore as against Rs 126.68 crore in the year-ago period.
As of December 31, 2020, gross NPAs were Rs 29.91 crore or 0.78 per cent, and net NPAs were Rs 12.81 crore or 0.33 per cent.
Its capital adequacy as on December 31, 2020 stood at 41.2 per cent. Cost of funds stood at 8 per cent.
It has 554 branches across the country and serves close to 14.4 lakh customers.