Suryoday Small Finance Bank’s (SSFB) initial public offering (IPO) will be open for subscription from today. It will close on March 19, 2021. On March 16, the financial institution raised around Rs 170.13 crore from 13 anchor investors for many large investors.
Anchor investors that have bid for Suryoday Small Finance Bank shares are ICICI Prudential Life Insurance, 238 Plan Associates LLC (MIT*), Birla Mutual Fund, Axis Mutual Fund, SBI Life Insurance, Ashoka India Opportunities Fund (White Oak Capital Management), IDFC Mutual Fund, ICICI Lombard Insurance Company, Goldman Sachs (Singapore) amongst others.
This institution has been one of the favourites among institutional investors even before the IPO.
Before the IPO, some institutional investors which have invested in Suryoday Small Finance Bank are International Finance Corporation (IFC), Gaja Capital Fund II Ltd, DWM (International) Mauritius, HDFC Holdings, IDFC FIRST Bank, Americorp Ventures, Kotak Mahindra Life Insurance and Gaja Capital India AIF Trust.
After the IPO, while IFC will make a complete exit by selling 4.48 per cent of equity share, the rest of the investors will lower their stake in the small finance bank-led by Bhaskar Babu.
The Bank is promoted by Baskar Babu Ramachandran, P Surendra Pai, P S Jagdish and G V Alankara. As of the date, the promoters, in aggregate, hold 2.97 crore equity shares in the Bank, representing 30.35 per cent of the issued, subscribed and paid-up equity share capital of the bank.
The price band of the offer has been fixed at Rs 303 to Rs 305 per piece.
The issue comprises a fresh issue of up to 81.50 lakh equity shares and an offer for sale of up to 1.09 crore equity shares.
Bids can be made for a minimum of 49 equity shares and in multiples of 49 equity shares thereafter.
Suryoday Small Finance Bank commenced its operations as an SFB in 2017. Suryoday’s gross loan portfolio has grown at a CAGR of nearly 47 per cent from FY18 to FY20. On the other side, its deposit franchise has also demonstrated growth of approximately 95 per cent from FY18 to FY20, mainly driven by retail deposits. As of December 2020, retail deposits comprised 72.4 per cent of its total deposits.