
Suryoday SFB IPO: Key Details
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Company Information
Suryoday Small Finance Bank, incorporated in 2017 as an SFB, is a leading SFB in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020.
Prior to commencement of operations as an SFB, they operated as an NBFC carrying out microfinance operations and operated the joint liability group-lending model for providing collateral-free, small ticket-size loans to economically active women belonging to weaker sections. Their average “priority sector” loans, as a percentage of average ANBC for Fiscal 2018, 2019 and 2020 and nine months ended December 31, 2020 was 99.08%, 112.10%, 103.67% and 114.09%, respectively. Over the years, they have diversified their loan portfolio to include non-micro banking loans thereby reducing the dependence on micro banking business.
Competitive Strengths
- Customer centric approach with a focus on financial inclusion
- Diversified asset portfolio with a focus on retail operations
- Fast evolving granular deposit franchise
- Leveraging emerging technologies to enhance digital footprint
- Strong credit processes and robust risk management framework
- Track record of strong financial performance and cost efficient operations
- Experienced leadership team, professional management and strong corporate governance
Company Strategy
- Expand asset portfolio while focusing on secured lending
- Strengthen the retail liability franchise
- Continue to focus on technology and data analytics to grow operations
- Expand geographic presence and penetrate further into existing geographies
Proceeds from Suryoday SFB IPO will be used to:
- Augment Bank’s Tier – 1 capital base to meet bank’s future capital requirements.
- Receive the benefits of listing the Equity Shares on the Stock Exchanges
Suryoday SFB IPO: Financials
2018 | 2019 | 2020 Mar | 2020 Dec | |
---|---|---|---|---|
Interest Earned | ₹286.88 Cr | ₹530.11 Cr | ₹766.69 Cr | ₹624.35 Cr |
Total Income | ₹324.93 Cr | ₹597.03 Cr | ₹854.14 Cr | ₹689.27 Cr |
Net Profit | ₹11.49 Cr | ₹90.39 Cr | ₹111.20 Cr | ₹54.87 Cr |
EPS (Basic) | 1.76 | 13.35 | 13.41 | 6.19 |
Basis for Pricing | EPS (Avg) | P/E (Floor) | P/E (Cap) |
---|---|---|---|
Based on basic EPS | 11.45 | 26.46 | 26.64 |
Comparison with listed industry peers
Company | P/E (Cap) |
---|---|
Suryoday SFB | 26.64 |
Sector Highest | 48.34 |
Sector Lowest | 12.14 |
Sector Average | 25.15 |
Suryoday SFB IPO Dashboard
Issue Details
Type | Value |
---|---|
Issue Size | ₹582.34 Cr |
Fresh Issue | ₹248.58 Cr |
Offer for Sale | ₹333.76 Cr |
Face Value | ₹10/- per Equity Share |
IPO Price | ₹303 – ₹305 |
Lot Size | 49 shares |
Lots | Min 1 – Max 13 |
Key Dates
Date Type | Date |
---|---|
Bid Open | 17/03/2021 |
Bid Close | 19/03/2021 |
Allotment Finalization | 24/03/2021 |
Initiation of Refunds | 25/03/2021 |
Credit of Shares | 26/03/2021 |
Listing Date | 30/03/2021 |
Lot Size and Price
Lots | Shares | Amount |
---|---|---|
1 | 49 | ₹14,945 |
13 | 637 | ₹1,94,285 |
Promoter Holding
Holding | Percentage |
---|---|
Pre-Issue | 30.35% |
Post-Issue | 28.02% |
Suryoday SFB IPO: Investor Quota and Shares Offered
Investor Type | Quota | Shares on Offer |
---|---|---|
QIB | 50% | [●]* shares |
NII | 15% | [●] shares |
RII (Retail) | 35% | [●] shares |
Total | 100% | [●] shares |
Suryoday SFB IPO: Risks
- Suryoday SFB is currently significantly dependent on advances to inclusive finance (JLG) customers and any adverse developments in the microfinance sector including any regulatory changes could adversely affect the business
- Inability to comply with stringent regulatory requirements and prudential norms set for banks may have an adverse effect on the business
- The Bank and its Directors are involved in certain legal proceedings, any adverse developments related to which could materially and adversely affect the business
- Business is vulnerable to interest rate risk, and any volatility in interest rates or inability to manage interest rate risk could adversely affect the business
- Bank’s deposits depend on a limited number of customers and a loss of such customers could materially and adversely affect cash flows
For complete internal and external risk factors, you can refer the RHP of the company.
Suryoday SFB IPO: Registrar and Lead Managers
Registrar of the Issue
KFintech (Formerly Karvy)
Selenium Building, Financial District, Nanakramguda, Serilingampally,
Rangareddi, Telangana India – 500 032.
Phone:040-67162222
Email: [email protected]
Lead Managers of the Issue
Axis Capital Limited
ICICI Securities Limited
IIFL Securities Limited
SBI Capital Markets Limited
Phone: +91-22-4325 2183 / +91-22-2288 2460
Email: [email protected]