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Suryoday SFB IPO elicits mixed reaction from analysts; here's why


The three-day initial public offer (IPO) by Suryoday Small Finance Bank (SFB) is slated to open on Wednesday, March 17 along with the much-awaited issue by Rakesh Jhunjhunwala-backed Nazara Technologies.
The IPO is a mix of an offer for sale (OFS) and a fresh issue in which the company is looking to sell 1.9 crore shares, priced in the range of Rs 303-305 per share to raise up to Rs 581 crore. Investors can bid for a minimum of 49 shares and in multiples thereof. The bank proposes to utilise the net proceeds from the fresh issue towards augmenting its Tier – 1 capital base and to meet future capital requirements. ....

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Suryoday SFB IPO opens on Mar 17; bank has grown higher than industry, growth momentum to continue


In an exclusive interview with ET NOW, Baskar Babu Ramachandran, MD & CEO, Suryoday Small Finance Bank said,  The IPO size is about Rs 580 crore and of which Rs 250 crore is towards the primary issuance and the rest is an offer for sale. The funds via offer for sale will not come to the bank. The bank is well capitalized as of now and one of the reason to raise funds via IPO is to comply with the regulatory norm that Small Finance Bank (SFB) has to get listed within 3 years of reaching a Rs 500 crore networth threshold.
Ramachandran added, The bank has grown at a cagr of 47% in the last 3 years which is higher than the industry growth rate and believes that the growth momentum will continue. Focus would remain to serve the underserved segment which is to lend to the aspirational low income households, unsecured low income loans also known as microloans. ....

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Suryoday SFB ipo: Suryoday Small Finance Bank fixes price band for IPO


KOLKATA: Suryoday Small Finance Bank has fixed a price band of Rs 303-305 per equity share for its initial public offer (IPO) which will hit the market on March 17. The bank would offer Rs 30 discount per share to its employees.
The size of the public issue would be Rs 582 crore considering the upper end of the price band. The issue will close on March 19. Size of the primary issue would be about Rs 249 crore while it also includes offer for sale worth Rs 333 crore.
International Finance Corporation-backed Suryoday will be the fourth small finance bank to go public after AU Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank. Unlike Equitas and Ujjivan, Suryoday has no holding company. ....

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Suryoday Small Finance Bank ipo: Suryoday SFB raises Rs 150 crore before IPO


KOLKATA: Suryoday Small Finance Bank has raised Rs 150 crore from SBI Life Insurance Company and Axis Asset Management Company in a pre-IPO placement, valuing the bank at Rs 2,700 crore
The pre-IPO placement was made at Rs 291.75 a share ahead of its likely initial public share sale that seeks to garner Rs 550-600 crore. The public issue is likely later this month. The bank may attract 5-10% premium over the pre IPO price, people involved in the process said. Pre-IPO purchases of shares cannot be offloaded for a year.
A pre-IPO placement is a sale of a large chunk of shares ahead of an IPO. Normally, the price of equity shares at the time of public offer comes at a premium over the pre-IPO price. ....

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