Suryoday Bank is a recently established organization. The firm started functioning as a Small Finance bank on 23rd January, 2017. The bank initially started in 2008. The aim of the bank is to swerve banked, underbanked and unbanked sections of the society. The major functions and aims of the bank include :
- Offering loans and credit facilities of MFI loans, Shopkeeper loans and Vikas Loans and many more.
- Digital banking facility to all the customers along with providing the traditional methods of banking.
- The bank also wants to expand itself in the states where it is not currently functioning and serve the customers with appropriate banking methods.
Suryoday Small Finance Bank is the only bank to obtain a SFB license from the state of Maharashtra. The bank started its journey as a microfinance bank and now has successfully converted itself into a SFB (Small Finance Bank).
Suryoday Small Finance Bank Ltd IPO Details
The Suryoday Small Finance Bank Limited IPO is set to hit the Dalal Street on 30th March, 2021. The IPO is getting open for subscription on 17th March, 2021. The Subscription ends on 19th March, 2021. The issue is a book built issue and the Face Value per share is 10 Rs. The IPO price band is set at 303to 305 Rs per share. The minimum size of shares for subscription is set at 49. Hence the minimum order quantity would be 49 shares. Also the maximum shares that one can opt for are 637 shares amounting to Rs. 194285 Rs.
The issue is set to raise Rs. 582.34 Crore Rs. The fresh Issue is amounted to Rs. 248.58 Crore Rs. and the Offer For Sale is amounted to Rs. 333.76 Crore. The IPO will be listed at both NSE and BSE. The registrar for the company is Karvy Fintech Private Limited.
Tabular Representation of IPO Details
| IPO OPENING DATE | 17th March, 2021 |
| IPO CLOSING DATE | 19th March, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | Rs. 10 per share |
| IPO price band | Per share – 303 Rs – 305 Rs. |
| LOT SIZE | 49 shares |
| MINIMUM ORDER QUANTITY | 49 shares |
| ISSUE SIZE | 582.34 Crore Rs. |
| OFFER FOR SALE | 333.76 Crore Rs. |
| FRESH ISSUE | 248.58 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 30th March, 2021 |
Important Dates
| IPO OPENING DATE | 17th March, 2021 |
| IPO CLOSING DATE | 19th March, 2021 |
| IPO ALLOTMENT DATE | 24th March, 2021 |
| REFUNDS | 24th March, 2021 |
| DEMAT A/C CREDITED ON | 25th March, 2021 |
| IPO LISTING DATE | 30th March, 2021 |
Suryoday Small Finance Bank Ltd IPO will be launched on 17th March, 2021. The subscription would conclude on 19th March, 2021. The allotment would be processed by 24th March, 2021. The DEMAT A/C of shareholders would get credited on 24th March, 2021 with shares. The Refunds would be initiated on 25th March, 2021. The share would hit the Dalal street on 30th March, 2021.
Promoter and Lead Managers
The major promoters of the firm are as follows :
- P.S. JAGDISH
- P. SURENDRA PAI
- G.V. ALANKARA
- BASKAR BABU RAMACHANDRAN
The promoter holding before the IPO is 30.35%. This percentage would shrink to 28.02% after the IPO launch.
Suryoday Small Finance Bank Ltd IPOs lead managers are :
- ICICI Securities Limited
- SBI Capital Markets Limited
- Axis Capital Limited
- IIFL Holdings Limited
Objectives for the Suryoday Small Finance Bank Ltd IPO
The major objectives behind this IPO are as follows :
- Suryoday Bank wants to increase its banking capital base. Hence the bank wants to expand its business with more capital. Thus using the public IPO for that purpose.
Company Financials
| Particulars (in Million Rs.) | 2019-20 | 2018-19 | 2017-18 |
| ASSETS | 53646 | 37610 | 21559 |
| REVENUE | 8542 | 5971 | 3250 |
| NET PROFIT | 1112 | 904 | 115 |
The company has excellent financials. The asset base of the company is expanding continuously. The asset base was 21550 Million Rs in 2017 and it increased by almost 15000 Million Rs . in the upcoming years. Also the year after that i.e. in 2020 the assets increased by almost 20000 million Rs. This is a green flag for the bank as it signifies the bank’s objectives of expansion and diversification of business.
The revenues of the company are also increasing simultaneously. The revenue was 3250 Million Rs. in 2017 and it increased to 6000 Million Rs. This means an increase of 1.7 times. Also in 2020 the revenue jumped to 8500 Million Rs. Hence the asset increase in the bank and the revenue of the bank both are in proportion to each other.
Pointing the Profits of the bank they have increased tremendously in 2018. The net profits back in 2917 were 115 Million Rs. and this increased to 904 Million Rs. in 2018. This means almost 9 times growth in net profits. However this may result because of the paying off of debts and borrowings on a large scale. Also the net profits increased in the 2020 year by 2000 Million Rs. Hence the Financials are increasing in proportional rate which is excellent for the firm.
In 2020 Dec results the assets have recorded to 63500 Million Rs and the revenue is almost 7000 Million Rs. Also the net profits have reached 550 Million mark. Hence the bank has continued to expand and perform better. Having looked at financials the bank is doing excellent and hence it is a good option for long term investments.
Pros
- The bank has more than 480 outlets across India.
- The bank serves more than 14.5 Lakh customers in just 13 years.
- The company successfully operates in urban and semi urban areas. This is the reason why the bank continues offering traditional facilities of banking as well.
- The bank provides Shopkeeper loans and Vikas loans and also performs asset management functions and portfolio management functions. Hence the bank serves the unbanked as well as the banked customers.
- The financials of the bank are excellent and the bank is making tremendous investment for expansion. The assets of the bank are growing by almost 10000 to 20000 Million Rs per year.This signifies the rate at which the bank is expanding itself. Also one of the motto of the bank is to establish itself in the states where it currently does not function. Hence working on its objectives.
Cons
- The bank has a lot of competition from other Small Finance banks.
- Suryoday Small Finance Bank has recently converted itself into SFB so it would be rough to survive. Also the RBI panel is having the discussions to grant Bank title to many finance companies. If that cushion comes through the bank may suffer major business loss.
- Suryoday bank is lesser known in urban areas. The bank serves the urban as well as semi urban population. So the customer base is split up but with major semi urban account holders the amount of transaction value is low. So the bank would need to expand its facilities towards urban customers as well to get the cash flow going through.
How to Apply for Ipo with Zerodha?
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section
- Click the Suryoday Small Finance Bank Limited IPO button and press the BID button
- Entering the details asked for like UPI ID, Quantity and price
- Submit the application form of IPO
- Visiting the application of UPI for approving the transaction
Now, applying for IPO online is possible with most of the Discount and online brokers.
