The proceeds from the issue will be used to augment tier-1 capital base to meet future capital requirements. As of March 2020, the lender's CRAR was at 29.57%--tier 1 capital of 28.61%--the highest among small finance banks
MUMBAI: Suryoday Small Finance Bank's initial public offering will open on 17 March, with the issue price fixed at Rs303-305 a share. The offer will close on 19 March.
The IPO of up to 19.09 million shares comprises a fresh issue of 8.15 million shares and an offer for sale of up to 10.94 million shares by existing promoters and shareholders. At the upper end price band, the lender may raise over Rs582 crore.
The offer for sale will see International Finance Corp selling up to 4.39 million shares by, Gaja Capital Fund II liquidating 2.02 million shares, sale of up to 1.89 million shares by DWM International Mauritius, up to 7.50 lakh by HDFC Holdings, 2.5 lakh shares by IDFC First Bank, up to 1 lakh share by Americorp Ventures, 1.87 lakh shares by Kotak Mahindra Life Insurance.
Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets are the book lead running managers to the issue.
The proceeds from the issue will be used to augment tier-1 capital base to meet future capital requirements. As of March 2020, its CRAR was at 29.57% (Tier I capital of 28.61%) and was the highest among all small finance banks.
As of March last year, Suryoday Small Finance Bank's gross bad loans totalled Rs101.25 crore, which made for 2.79% of gross advances, while net non-performing assets were at Rs20.37 crore, or 0.57% of net advances.
For FY20, the lender's net interest income was at Rs490.90 crore against Rs340.37 crore a year ago. Net profit stood at Rs111.20 crore versus Rs90.40 crore last year. Advances for the period stood at Rs3,531.94 crore from Rs2,679.58 crore while deposits were at Rs2,848.71 crore compared with Rs1,593.42 crore a year ago.