The Rs 582-crore initial public offering (IPO) of Suryoday Small Finance Bank (SSFB) has started today, March 17. The offer comprises a fresh issue of 81.50 lakh equity shares and an offer for sale of 1.09 crore equity shares by existing selling shareholders. The lender has fixed a price a band of Rs 303-305 a share for the issue, which will close on March 19. Ahead of IPO, the company has raised around Rs 170 crore from anchor investors.
Here's all you need to know about Suryoday Small Finance Bank IPO:
- The bidding for Suryoday Small Finance Bank IPO starts off on March 17 and will close on March 19.
- The offer comprises fresh issuance of 81,50,000 equity shares and an offer for sale of up to 1,09,43,070 equity shares by existing shareholders including International Financial Corporation (IFC), Gaja Capital, HDFC Holdings, IDFC First Bank, Kotak Mahindra Life Insurance Company, DWM (International) Mauritius Ltd and Americorp Ventures.
- The small finance bank has set a price a band of Rs 303-305 a share for its IPO.
- At the upper end of the price band, the IPO would fetch Rs 582 crore to the company.
- The bank intends to utilise the net proceeds towards augmenting its Tier-I capital base to meet future capital requirements.
- The company has raised over Rs 170 crore from anchor investors ahead of an initial share-sale. The anchor investors include Axis Mutual Fund, IDFC Mutual Fund, SBI Life Insurance Company Ltd, Integrated Core Strategies Asia Pte Ltd, Aditya Birla Sunlife Insurance Company, ICICI Lombard General Insurance Company, ICICI Prudential Life Insurance Company, Goldman Sachs (Singapore) Pte and India Max Investment Fund Ltd.
- Axis Capital, ICICI Securities, SBI Capital Markets and IIFL Securities are the merchant bankers of the issue.
- Shares of Suryoday Small Finance Bank will be listed on BSE and NSE.
- The small finance bank has over 20 institutional investors with a mix of institutional investors, development funds, and private equity investors. As of March 2020, its net worth stood at around Rs 1,000 crore with a capital adequacy ratio of 30 per cent. It has a deposit base of more than Rs 2,800 crore and a gross loan portfolio of around Rs 3,700 crore.