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Suryoday Small Finance Bank is set to raise Rs 582.33 crores through an initial public offering (IPO). The issue opens for subscription on March 17 and closes on March 19, 2021.
The small finance bank has fixed a price band of Rs 303-305 per share. Investors can bid for a minimum of 49 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,945 at the higher end of the price band. A retail investor can at max apply for 13 lots or 637 shares for 1,94,285.
The issue of up to 1,90,93,070 shares comprises of a fresh issue in which the bank will issue 81,50,000 shares totalling Rs 248.58 crore and offer-for-sale (OFS) is for 1,09,43,070 shares worth Rs 333.76 crore by promoters and existing shareholders.
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.
Not more than 50% of the net issue will be reserved for qualified institutional investors (QIBs), 35% of the portion for retail investors and not less than 15% for non-institutional investors. Along with this, 5 lakh equity shares will be reserved for eligible employees. Also, a discount of Rs 30 per share is also being offered to eligible employees bidding in the employee reservation portion.
Suryoday Small Finance Bank’s has gross bad loans totalled Rs 101.25 crore, which made for 2.79% of gross advances as of March last year, while net non-performing assets were at Rs20.37 crore, or 0.57% of net advances.
Bank’s net interest income stood at Rs 490.90 crore in FY2020 against Rs 340.37 crore FY2019. Net profit stood at Rs 111.20 crore in FY2020 versus Rs 90.40 crore last year. Advances for the period stood at Rs 3,531.94 crore from Rs 2,679.58 crore while deposits were at Rs 2,848.71 crore compared with Rs 1,593.42 crore a year ago.
Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets are the book lead running managers to the issue. Whilst the registrar to the issue is Kfin Technologies.
The issue is likely to finalize the basis of allotment by March 24, and the initialization of funds will take place by March 24. While the credit of equity shares to depository accounts of allottee on March 25. The small finance bank is expected to make its stock market debut on March 30, 2021.