Suryoday Small Finance Bank IPO: Suryoday Small Finance Bank (SFB) is scheduled to open an IPO of Rs 582.33 crore on Wednesday 17 March next week. The price band for this IPO has been fixed at Rs 303-305 per share. The face value of each share is 10 rupees. The IPO will be open for subscription from 17 March and will be able to bid for it by 19 March 2021. 81.50 lakh fresh shares will be floated under the IPO (Initial Public Offer) of Suryodaya Small Finance Bank and 1.09 crore equity shares will be floated under Offer for Sale (OFS). Apart from this, so far, there is no activity in the gray market for Sunrise Small Finance Bank Shares.
Lot size of 49 shares
Suryoday SFB has put a lot size of 49 shares for the IPO, meaning that for subscription, investors will have to bid for at least 49 equity shares. According to the upper price band of Rs 305, investors will have to invest Rs 14945. A maximum of 50 per cent of the net issue will be reserved for qualified institutional investors (QFB), 35 per cent for retail investors and a minimum of 15 per cent for non-institutional investors.
Apart from this, 5 lakh equity shares will be reserved for eligible personnel. If the eligible workers bid under the Employment Reservation Portion, they will also get a discount of 30 rupees per share. The book running lead managers to Issu are Axis Capital, ICICI Securities, IIFL and SBI Capital Markets. Apart from this the registrar is Fin Technologies Private Limited.
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54.8 crore profit in the third quarter.
The proceeds from the Suryoday Small Finance Bank IPO will be used for future capital needs. Sunrise SFB posted a profit of Rs 54.8 crore in the third quarter of October-December 2020 of the current financial year. According to UnlistedArenadotcom founder Abhay Doshi, this year has been very difficult for the financial sector due to the Corona epidemic, especially for Small Finance Bank. However, Sunrise SFB ranks among the country’s leading SFBs in terms of NIM, ROA, Yields, Deposit Growth and Lowest Cost-to-Income Ratio.
According to Abhay Doshi, its issue price is renewable. According to the data available in the December 2020 quarter, P / BV of Sunrise was 2.28 which is resizable compared to other peers in the sector. Talking about the Small Finance Bank listed in the market, Ujjivan SFB, Credit Access Gramin, Spandan Pesh Financial, Bandhan Bank and AU SFB are listed. The highest P / E of the industry is 48.34x which is of AU SFB and the lowest P / E is of 12.14x vibrating Peshna Financial Limited. In this way, the average P / E of the industry is 25.15x when it comes to the average P / E.