Suryoday SFB share price: Suryoday SFB lists at 4% discount to issue price
The Rs 582 crore IPO, which was sold from March 17 to 19, was subscribed 2.37 times. The portion reserved for qualified institutional buyers (QIBs) was subscribed 2.18 times, the non-institutional quota 1.31 times and the retail quota 3.09 times.
Analysts were not so bullish on the issue. They noted that gross non-performing assets of the SFB are expected to remain elevated due to the impacts of moratorium and stress in the micro finance segment. They anticipated gross NPAs of 3.2 per cent for the SFB by FY23 end.
The bank focuses on the underbanked and underserved lending market with relatively small assets under management of Rs 3,900 crore. The SFB has been diversifying from MFI, which accounts for 70 per cent of loans towards secured loans like commercial vehicles, affordable housing and business loans. These loans account for 16 per cent of loans.
The primary objective of the bank’s listing was to meet RBI guidelines. Unlike Equitas and Ujjivan, the SFB does not have any issue of holdco structure.
Analysts said the valuations of 2.2 times 9MFY21 book value and 2 times FY21E BV had factored in the business scalability and likely could have better entry point ahead, Prabhudas Lilladher noted.
The bank has proposed to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements.
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