Suryoday Small Finance Bank IPO: Issues to be opened today, should you invest?

Suryoday Small Finance Bank IPO: Today, on March 17, the Suryoday Small Finance Bank (IPO) of Suryoday Small Finance Bank will open an IPO of Rs 582.33 crore. The price band for this IPO has been fixed at Rs 303-305 per share. The face value of each share is 10 rupees. The IPO will be open for subscription from 17 March and will be able to bid for it by 19 March 2021.

Anchor investors will be able to bid on March 16. 81.50 lakh fresh shares will be floated under the IPO of Suryodaya Small Finance Bank and 1.09 crore equity shares will be floated under Offer for Sale (OFS).

This is the fourth small finance bank with an IPO coming up. Earlier, AU Small Finance Bank, Ujjivan Small Finance Bank and Equitas Small Finance have been listed in the market.

Suryoday Small Finance Bank’s IPO will be listed on BSE and NSE. Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets are the book running lead managers of the issue.

Know 10 things related to the company’s IPO

The company’s IPO will open on March 17 and will close on March 19.

The price of the company issue is Rs 303-305 per share.

In the issue of the company, 81.50 lakh fresh shares and 1.09 crore equity shares are being issued under the offer for sale.

Who is selling how much stake?

International Finance Corporation 43,87,888 equity shares

Gaza Capital Fund II 20,21,952 shares

DWM (International) Mauritius 18,89,845 shares

HDFC Holdings 7.5 million shares

IDFC First Bank 1.5 million shares,

Americorp Ventures 1 Lakh Shares,

Kotak Mahindra Life Insurance Company 1,86,966 shares

Gaza Capital India AIF is selling 1,06,419 shares.

-Bank has reserved 5 lakh shares for its employees. Bank employees have been given a discount of 10 percent. They will get 30 rupees per share at a lower price.

Suryodaya Small Finance Bank has raised Rs 151.94 crore by issuing 52,08,226 equity shares to SBI Life Insurance Company, Axis Flexi Cap Fund, Axis Equity Hybrid Fund and Kiran Trading at Rs 291.75 per share.

-Investors may bid for at least 49 shares. After this, one can bid for 49-49 shares.

By March 2020, the loan portfolio of Suryoday Small Finance Bank was Rs 3,711 crore. 76% of its customers are women. The bank offers commercial vehicle loans, affordable housing loans and loans to small and medium businesses.

The bank had a net interest margin of 11.92 per cent in the fiscal year 2020. By December 2020, the loan portfolio of Suryoday Small Finance Bank has increased to Rs 3900 crore.

-Bank will issue Rs 1.159 crore fresh issue under IPO and 84 lakh shares in Offer for Sale (OFS).

Current investors of the bank include International Finance Corporation, Gaja Capital, DWM (International) Mauritius, IDFC First Bank, Kotak Mahindra Life Insurance and Kotak Mahindra Life Insurance and Polaris Banyan Holding ) Who are selling their steak.

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