The company will sell its shares in Rs 303-305 price band. Investors can apply for a lot of 49 shares and in multiples thereafter. Retail investors can apply for a maximum of 13 lots.
Suryoday SFB plans to raise Rs 581 crore from the primary market. The issue comprises a fresh issue of up to 8,150,000 shares and an offer for sale of up to 10,943,070 shares.
“At a higher price band (Rs 305), the stock is valued at 2.28 times P/BVPS with current book value per share of Rs 133.5. Factoring the good return ratios, FY20 ROA/ROE of 11.3 per cent/2.5 per cent, we believe that Suryoday Small Finance Bank Limited is worth subscribing. Thus we recommend ‘subscribe’,” said Ajit Jumar Kabi, an analyst at LKP Securities.
Up to 50 per cent of the total shares on offer will be reserved for QIBs and 15 per cent will be reserved for high net worth investors. Rest will be offered to retail investors.
The bank has already undertaken a pre-IPO placement of 5,208,226 shares. It issued these shares at Rs 291.75 to SBI Life Insurance Company, Axis Flexi Cap Fund, Axis Equity Hybrid Fund and Kiran Vyapar. The company garnered Rs 152 crore from these investors.
The issue is managed by Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets. Kfin Technologies is the registrar to the issue.
