Shares of Suryoday Small Finance Bank were trading at Rs 286.10 at 10:11 IST on the BSE, a discount of 6.1% over the initial public offer (IPO) price of Rs 305.
The stock was listed at Rs 293, a discount of 3.93% to the IPO price. So far, the stock hit a high of Rs 295.95 and low of Rs 278.80. On the BSE, 1.56 lakh shares were traded on the counter so far.The IPO of Suryoday Small Finance Bank was subscribed 2.37 times. The issue opened for bidding on Wednesday, 17 March 2021, and it closed on Friday, 19 March 2021. The price band for the IPO was set at Rs 303-305 per share.
The retail individual investors category was subscribed 3.09 times. The qualified institutional buyers (QIBs) category was subscribed 2.18 times. The non-institutional investors category was subscribed 1.31 times.
The issue comprised of 1.90 crore equity shares comprising a fresh issue of up to 81.50 lakh equity shares and an offer for sale of up to 1.09 crore equity shares. Ahead of the IPO, the bank finalized allocation of 55.77 lakh shares to anchor investors at a price of Rs 305 per share, aggregating to Rs 170.12 crore.
The bank proposes to utilize the net proceeds from the offer towards augmenting bank's tier I capital base to meet future capital requirements. The listing of the bank is also in line with terms of the RBI in-principal approval, RBI final approval and SFB licensing guidelines, requiring the bank to list its equity shares on the stock exchanges within three years from the date of commencement of business.
The small finance bank reported a net profit of Rs 54.87 crore and a net total income of Rs 418.20 crore in the nine months ended on 31 December 2020.
Suryoday Small Finance Bank is among the leading Small Finance Bank (SFBs) in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among SFBs in India in FY2020.
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