Suryoday SFB ipo: Suryoday Small Finance Bank raises Rs 170 crore from anchor investors
The allocation covered 29% of the IPO size and 68.4% of the total fresh issue which is set to hit the market for general subscription Wednesday. The price band for the issue is pegged at Rs 303-305 per share.
The IPO Committee of the bank’s board has finalised the allocation Tuesday in consultation with book running lead managers Axis Capital, lClCl Securities, IIFL Securities and SBl Capital Markets, the bank said in a regulatory filing.
Both Axis Mutual Fund and ICICI Prudential Life have invested Rs 22.5 crore each, which together is 26.5% of the anchor allocation. Two Aditya Birla group companies have invested Rs 32.5 crore, covering 19.13% of the allocation.
SBI Life Insurance Company has invested Rs 17.5 crore while Goldman Sachs has invested Rs 5 crore. IDFC Mutual Fund also invested through two of its schemes.
The size of the public issue is Rs 582 crore considering the upper end of the price band. It includes primary issue of shares worth Rs 249 crore and an offer for sale worth Rs 333 crore through which some of the existing investors would look to partly offload shares.
The Navi Mumbai-based lender earlier raised Rs 152 crore in a pre-IPO placement.
Brokerages such as LKP Securities and Canara Bank Securities said the IPO is fairly valued while Reliance Securities pointed out the high proforma non-performing assets could lead to asset quality stress in the future, especially in the microfinance portfolio.
Suryoday’s gross loan portfolio was around Rs 3,900 crore at the end of December 2020 with the share of micro loans at 70%.
The bank enjoys a net interest margin close to 12%, and has a concentration of gross loans in three states — Maharashtra, Tamil Nadu and Odisha. These three states account for 77% of the bank’s lending businesses.
International Finance Corporation-backed Suryoday will be the fourth small finance bank to go public after AU Small Finance Bank, Equitas Small Finance Bank and
. Unlike Equitas and Ujjivan, Suryoday has no holding company.
