Suryoday Small Finance Bank IPO opens tomorrow; issue price fixed at Rs 303-305 per share

The initial public offering (IPO) of Suryoday Small Finance Bank will open tomorrow(17 March, Wednesday) and close two days later, on 19 March. The company has fixed the issue price at Rs 303-305 a share. Investors will be able to apply for a lot of 49 shares and in multiples thereof. Retail investors can apply for a maximum of up to 13 lots. With an IPO of up to 19.09 million shares, Suryoday SFB is aiming at raising Rs 582 crore through the issue. The bank, which has 477 outlets, has previously undertaken a pre-IPO placement of 5,208,226 shares. These shares were issued to SBI Life Insurance, Axis Flexi Cap Fund, Axis Equity Hybrid Fund and Kiran Vyapar at Rs 291.75 per share. The company was able to rake in Rs 152 crore from the aforementioned investors. The issue price is being considered to be almost in-line with the unlisted (Pre-IPO) market. Financial Express quoted Abhay Doshi, Founder, UnlistedArena.com as saying that the issue looked reasonably priced. In a similar vein, Ajit Jumar Kabi, an analyst at LKP Securities, said that they would recommend a subscriber rating on the issue. “Factoring in the good return ratios, FY20 RoA/RoE of 11.3 per cent/2.5 per cent, we believe Suryoday Small Finance Bank is worth subscribing to,” he said. According to Livemint, the bank’s net interest income was at Rs490.90 crore for FY20 against Rs340.37 crore a year ago FY19. With regard to net profits, it stood at Rs111.20 crore compared to Rs90.40 crore last year With Kfin Technologies as the registrar, the issue is managed by Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets.