SEBI allow Suryoday Small Finance Bank to Float IPO

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Securities and Exchanges Board of India the market regulator has granted the go-ahead to small lender Suryoday Small Finance Bank to float its initial public offering. This initial public offering comprises fresh issuance of 1,15,95,000 equity shares and an offer for sale of up to 84,66,796 equity shares by existing shareholders, according to the draft papers filed with the regulator.

Those offering shares through the offer for sale route include IFC, Gaja Capital, HDFC Holdings, Infrastructure development finance company first bank, Kotak Mahindra Life Insurance Company, DWM (International) Mauritius Ltd, and Americorp Ventures. After filing its preliminary papers in October, the small lender got Securities and Exchanges Board of India observation on Dec 23, per an update on the regulator’s portal.

This observation from the Securities and Exchanges Board of India is very necessary for any company to launch public issues like initial public offer, follow-on public offer, and rights issue. Suryoday small finance bank has proposed to utilize the net proceeds from the fresh issue towards augmenting its Tier- 1 capital base to meet future capital requirements. As of March 2020, it has over twenty institutional investors with a mix of institutional investors, development funds, and private equity investors.

The net worth of Suryoday small finance bank stood at around ₹ 1,000 crores with a capital adequacy ratio of 30 %. It has a deposit base of more than ₹ 2,800 crores and a gross loan portfolio of around ₹ 3,700 crores. IIFL Securities, ICICI Securities, SBI Capital Markets, and Axis Capital are the merchant bankers for the issue.

Suryoday Small Finance Bank is a modern bank that started its operation on Jan 23rd, 2017. The bank endeavors to bring the best banking solutions to the banked, under-banked, and the un-banked sections of society. Suryoday small finance bank’s power-packed solutions are designed to offer the choicest of benefits to suit different financial needs. As always, the bank’s focus will continue to be on ensuring the best in class customer experience.

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