Suryoday Small Finance Bank is set to launch its initial public offering on March 17 and looks to raise about Rs 580 crore. The issue will close on March 19.
“The IPO will help the bank comply with the regulatory guidelines of the Reserve Bank of India for the listing of small finance banks within three years of their net worth reaching ₹500 crore, and also help raise enough primary capital to further enhance our capital base,” said R Baskar Babu, Managing Director and CEO, Suryoday SFB on Friday.
“The price band of the offer has been fixed at ₹303 to ₹305 per equity share,” the bank said in a statement, adding that it proposes to use the net proceeds from the fresh issue towards augmenting Tier – 1 capital base to meet its future capital requirements.
The issue comprises a fresh issue of up to 81.5 lakh equity shares and an offer for sale of up to 1.09 crore equity shares.
The bank has undertaken a pre-IPO placement of 52.08 lakh equity shares.
The offer for sale includes up to 43.87 lakh shares by International Finance Corporation, up to 20.21 lakh shares by Gaja Capital Fund II, up to 18.89 lakh shares by DWM (International) Mauritius, up to 7.5 lakh shares by HDFC Holdings, up to 15 lakh shares by IDFC First Bank, up to 1 lakh shares by Americorp Ventures, up to 1.86 lakh shares by Kotak Mahindra Life Insurance and up to 1.06 lakh shares by Gaja Capital India AIF Trust (represented by its trustee, Gaja Trustee Company).
The issue includes a reservation of up to five lakh shares (constituting up to 0.47 per cent of the post-Issue paid-up equity share capital), for subscription by eligible employees, who may be given a discount of up to 10 per cent of the issue price.
“Bids can be made for a minimum of 49 equity shares and in multiples of 49 equity shares thereafter,” the statement said.
Axis Capital, ICICI Securities, IIFL Securities and SBI Capital Markets are the Book Running Lead Managers to the issue