The size of the public issue would be Rs 582 crore considering the upper end of the price band. The issue will close on March 19.
It has already raised Rs 152 crore from SBI Life Insurance Company, Axis Asset Management Company and a few other investors in a pre-IPO placement at Rs 291.75 a share
A pre-IPO placement is a sale of a large chunk of shares ahead of an IPO. Investment through pre-IPO placement remains locked for a year.
Suryoday would be the fourth small finance bank to come out with IPO after AU Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank. Unlike Equitas and Ujjivan, Suryoday has no holding company.
Utkarsh Small Finance Bank has recently sought market regulator Securities & Exchange Board of India’s approval for a public offer. Reserve Bank of India has mandated small finance banks to get listed within three years of reaching a net worth of Rs 500 ccore.
Suryoday’s gross loan portfolio was around Rs 3900 crore at the end of December 2020 with micro loans share at 70%.
The IPO includes fresh issue of up to 11.59 million equity shares and an offer for sale of up to 8.4 million equity shares. Existing investors such as International Finance Corporation, Gaja Capital, DWM (International) Mauritius, IDFC First Bank, Kotak Mahindra Life Insurance and Polaris Banyan Holding will be paring their stakes through the offer for sale.
