Suryoday Small Finance Bank (SSFB) is planning to launch an initial public offering of about 2 crore equity shares, comprising a fresh issue of about 1.16 crore shares and offer for sale (OFS) of about 84 lakh shares by the selling shareholders.
As per small finance bank (SFB) licensing and operating guidelines, SSFB’s equity shares are required to be listed on the stock exchanges within three years from the date of reaching a net worth (that is tier I capital as defined by the RBI) of ₹500 crore (which in SSFB’s case was November 30, 2017). So, the SFB has to list on or prior to November 29, 2020.
According to the draft red herring prospectus (DRHP) filed with SEBI, SSFB may undertake a pre-IPO placement in consultation with the book running lead managers (BRLMs), of up to 75 lakh equity shares, in which case, the number of fresh equity shares issued under the IPO will be reduced proportionately.
Also read: Suryoday reports 28% jump in profit in FY20
The SFB reported a 23 per cent increase in net profit at ₹111 crore for FY20, against ₹90 crore in FY19. As at March-end 2020, SSFB had a gross loan portfolio of ₹3,711 crore with 477 branches and 14.6 lakh customers. The total deposits stood at ₹2,849 crore.
Selling shareholders
The promoters of the bank are Baskar Babu Ramachandran (MD & CEO), P Surendra Pai, PS Jagdish and GV Alankara. The share-selling shareholders are IFC, Gaja Capital Fund II Ltd, DWM (International) Mauritius Ltd, HDFC Holdings Ltd, IDFC FIRST Bank Ltd, Americorp Ventures Ltd, Kotak Mahindra Life Insurance Company Ltd, Polaris Banyan Holding Pvt Ltd, and Gaja Capital India AIF Trust (represented by its trustee, Gaja Trustee Company Pvt Ltd).
The percentage of the pre-issue paid-up capital held by the promoters and selling shareholders is at 29.63 per cent and 27.72 per cent, respectively.
Also read: Suryoday raises ₹62.14 cr for expansion
The weighted average prices at which the equity shares were acquired by the bank’s promoter (Baskar Babu), and selling shareholders Gaja Capital Fund, Kotak Mahindra Life , and Gaja Capital India AIF Trust in the last one year preceding the date of the DRHP were ₹140 and ₹260 apiece, respectively.
SSFB proposes to utilise the net proceeds to augment its tier-I capital base to meet future capital requirements.
Its asset products include inclusive finance loans, primarily comprising loans to joint liability groups; commercial vehicle loans; affordable housing loans; secured business loans; micro business loans; MSME/SME loans (unsecured); loans to financial intermediary groups; and other loans.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.