Suryoday Small Finance Bank Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹305
Per ShareLot Size
49 Shares
Minimum Investment
₹14,945
Issue Size
₹578.52 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Suryoday Small Finance Bank Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
30.35%
Promoter Holding (Post-Issue)
28.02%
Issue Type
Book Building
ISIN
INE428Q01011
About the Company
Suryoday Small Finance Bank Limited commenced operations as an NBFC and for over a decade have been serving customers in the unbanked and underbanked segments in India and promoting financial inclusion. Pursuant to receipt of the RBI Final Approval, it started operations as an SFB on January 23, 2017. It was among the leading SFBs 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.
Industry Overview
Prior to the operations as an SFB, it operated as an NBFC-MFI 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. Over the years, it has diversified its loan portfolio to include non-micro banking loans thereby reducing its dependence on micro banking business.
Company History
The Bank was originally incorporated as Suryoday Micro Finance Private Limited at Chennai, Tamil Nadu, as a private limited company under the Companies Act, 1956 pursuant to the certificate of incorporation dated November 10, 2008 issued by the Assistant Registrar of Companies, Tamil Nadu, Andaman and Nicobar Islands at Chennai. Subsequently, The Bank was converted into a public limited company and the name of the Bank was changed to Suryoday Micro Finance Limited, and a fresh certificate of incorporation dated June 16, 2015 was issued by the RoC. The Bank was granted the in-principle and final approval to establish a small finance bank ("SFB") by the RBI, pursuant to its letters dated October 7, 2015 and August 26, 2016, respectively. Pursuant to the Bank being established as an SFB, the name of our Bank was changed to Suryoday Small Finance Bank Limited and a fresh certificate of incorporation was issued by the RoC on January 13, 2017. The Bank commenced its business with effect from January 23, 2017 and was included in the second schedule to the RBI Act pursuant to a notification dated July 24, 2017 issued by the RBI and published in the Gazette of India on September 2, 2017
Products & Services
- Finance portfolio (comprising loans to JLG customers), commercial vehicle loans, affortable housing loans, unsecured micro and small enterprise and small and medium enterprise loans
- Secured business loans, Financial intermediary group loans and other loans
Growth Strategy
- Expand its asset portfolio while focusing on secured lending
- Strengthen its retail liability franchise
- Continue to focus on technology and data analytics to grow operations
- Expand geographic presence and penetrate further into existing geographies
Customer Base
Finance and general banking customers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 19,093,070 equity shares of face value of Rs. 10 each ("equity shares") of Suryoday Small Finance Bank Limited ("Bank" or "issuer") for cash at a price of Rs. 305 per equity share (including a share premium of Rs. 295 per equity share) aggregating to Rs. 580.84 Crores (the "issue") comprising a fresh issue of 8,150,000** equity shares aggregating to Rs. 247.94 Crores (the "fresh issue") and an offer for sale of 10,943,070 equity shares aggregating to Rs. 332.90 Crores ("the offer for sale"), comprising 4,387,888 equity shares aggregating to Rs. 133.49 Crores by International Finance Corporation, 2,021,952 equity shares aggregating to Rs. 61.51 Crores by Gaja Capital Fund II Limited, 1,889,845 equity shares aggregating to Rs. 57.49 Crores by DWM (International) Mauritius Ltd, 750,000 equity shares aggregating to Rs. 22.82 Crores by HDFC Holdings Limited, 1,500,000 equity shares aggregating to Rs. 45.63 Crores by IDFC First Bank Limited, 100,000 equity shares aggregating to Rs. 3.04 Crores by Americorp Ventures Limited, 186,966 equity shares aggregating to Rs. 5.69 Crores by Kotak Mahindra Life Insurance Company Limited and 106,419 equity shares aggregating to Rs. 3.24 Crores by Gaja Capital India AIF Trust (Represented by its trustee, Gaja Trustee Company Private Limited) (collectively, referred to as the "selling shareholders" and such equity shares the "offered shares"). The issue included a reservation of 500,000 equity shares, aggregating to Rs. 13.75 Crores (constituting 0.47% of the post-issue paid-up equity share capital), for subscription by Eligible Employees (The "Employee Reservation Portion"). The issue less the employee reservation portion is hereinafter referred to as "net issue". The issue and net issue constitute 17.99% and 17.52%, respectively, of the post-issue paid-up equity share capital of the bank. The bank and the selling shareholders in consultation with the book running lead managers, have offered a discount of Rs. 30 per equity share on the issue price to eligible employees bidding in the employee reservation portion ("Employee Discount"). Issue Price : Rs. 305 per Equity Share of face value of Rs. 10 each. Anchor Investor Issue Price : Rs. 305 per Equity Share. The Issue Price is 30.50 times the face value.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- 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
- The continuing impacts of COVID-19 are highly unpredictable and could be significant, and may have an adverse effect on its business, operations and its future financial performance.
- Its business 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 its business, financial condition, results of operations and cash flows.
- Banks in India, including this Bank, are subject to stringent regulatory requirements and prudential norms and its inability to comply with such laws, regulations and norms may have an adverse effect on its business, results of operations, financial condition and cash flows.
- The Bank and its Directors, are involved in certain legal proceedings, any adverse developments related to which could materially and adversely affect its business, reputation and cash flows.
- The Bank may not be able to comply with certain provisions of the SFB Licensing Guidelines. In the event of any non-compliance, it may be subject to various sanctions and penalties by the RBI and its business, financial condition, results of operations and cash flows could be adversely impacted.