Suryoday Small Finance Bank IPO expected by September 2020

Posted by Rajesh Singla on March 5th, 2020

Suryoday Small Finance Bank IPO

Get Suryoday Small Finance Bank IPO details. Find IPO Date, Price, Live Subscription, Allotment, Grey Market Premium GMP, Listing Date and Review.

Suryoday Small Finance Bank is a new age bank that went live on January 23rd 2017. Their endeavour is to bring the best banking solutions to the ‘banked’, ‘under-banked’ and the ‘un-banked’ sections of the society. Their power packed solutions are designed to offer the choicest of benefits to suit different financial needs. As always, their focus will continue to be on ensuring the best in class.

Suryoday Small Finance Bank continues to offer its existing credit products suite of MFI loans, Vikas Loans, Shopkeeper Loans etc. to new and current customers.

Offers digital banking as the key account differentiator to customers using the extensive seeding of Aadhar biometric identification system, NPCI’s payment systems and mobile technologies whilst continuing to explore banking through traditional channels.

Focus on the unserved and the underserved through innovative banking practices and continue to expand reach in states where it currently doesn’t have a presence.

Suryoday Small Finance Bank has been at the helm of financial inclusion since 2008. As a microfinance institution in its earlier avatar, it was able to create an outreach of over 7 lakh micro borrowers. As a responsible lender, it has always deemed financial literacy important. The bank’s Corporate social responsibility (CSR) initiatives are focused on financial literacy initiatives. Over a period of time the programs have been strengthened to keep pace with central government initiatives such as Jan Dhan, Aadhaar and Mobile (JAM) framework and digital financial literacy drives.

Suryoday Small Finance Bank (SFB) has joined the bandwagon of banks planning to launch their IPOs this year. The Navi Mumbai-based bank plans to raise up to INR1,000 crore (INR10 billion) through the share sale. Suryoday Small Finance Bank IPO will involve issuance of fresh shares as well as sale by existing shareholders and the latter is expected to garner around INR400 crore to current investors.

“The IPO will come by September 2020. We are looking to raise Rs 400 crore through OFS, while further fresh equity infusion will take the IPO size between Rs 600 and Rs 1,000 crore,” said R Baskar Babu, Managing Director and CEO of the bank.

The bank currently has a network of 382 branches but plans to expand the number to 600 by March 2020. “We are planning to increase our asset portfolio to approx. INR4,500-5,000 crore, while the deposits are expected to increase to INR3,500-4,000 crore by end of the fiscal,” said Babu about the bank’s plans which recently gained presence in Gujarat. The bank currently has asset portfolio of about INR3,000 crore and deposit book of about INR1,800 crore.

Suryoday Microfinance received RBI nod to convert into a Small Finance Bank in 2016 and it started banking operations in January 2017. The bank counts HDFC, HDFC Life, IFC, Lok Capital, TVS Capital Funds, Gaja Capital among its investors.

While the bank is gunning for the IPO next year, it is yet to start the groundwork for the same. No merchant bank has been hired so far to manage Suryoday Small Finance Bank IPO and a draft prospectus with market regulator SEBI is yet to be filed. Nevertheless, the bank remains hopeful of fulfilling compliance requirements by December before submitting paperwork to SEBI.

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Rajesh Singla

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Rajesh Singla
Joined: January 6th, 2020
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