BackSuryoday Small Finance IPO price band at ₹303-305
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
PremiumMUMBAI : Suryoday Small Finance Bank on Friday set an issue price of ₹303-305 a share for its three-day initial public offering (IPO) beginning 17 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 of the price band, the lender may raise over ₹582 crore.
The offer for sale will see International Finance Corp selling up to 4.39 million shares, Gaja Capital Fund II 2.02 million shares, DWM International Mauritius 1.89 million shares, HDFC Holdings 750,000, IDFC First Bank 250,000 shares, Americorp Ventures 100,000 share and Kotak Mahindra Life Insurance 187,000 shares.
Proceeds from the issue will be used to augment tier-1 capital base to meet future capital requirements. As of March 2020, the bank’s CRAR (Capital to Risk Assets Ratio) was at 29.57% (Tier I capital of 28.61%), the highest among all small finance banks.
“We have done a pre-IPO placement of ₹152 crore, promoters invested ₹60 crore. All put together ₹212 crore has been added to our net worth as of 31 December 2020. It will enable us to build on our capital base. It will enable us to grow not only in MFI (micro finance institution) but in other products as well. It will give us capital buffer for growth in the future," said Bhaskar Babu, managing director and chief executive officer, Suryoday Small Finance Bank.
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