Muted Listing: Suryoday Small Finance Bank debuts at 4% discount to issue price, opens at Rs 292
Suryoday Small Finance Bank listed on the bourses, just, to meet the RBI guidelines which says the small finance bank has to get listed after the completion of three years from the receiving license.
March 26, 2021 / 10:55 AM IST
Suryoday Small Finance Bank share price started off the first day of trading at a 4.2 percent discount at Rs 292 on March 26 on the National Stock Exchange amid weak market conditions and muted subscription to IPO.
The Rs 582.34 crore public issue was subscribed 2.37 times during March 17-19, the lowest subscription amongst IPOs closed in 2021.
The stock opened at Rs 293 on the BSE, down by 3.93 percent compared to issue price of Rs 305.
The weak market conditions partly led by FII selling and rising COVID-19 infections had dented sentiment in the primary market. The benchmark Nifty50 fell more than 7 percent from its record high seen in February.
Suryoday Small Finance Bank listed on the bourses just to meet the RBI guidelines which says the small finance bank has to get listed after the completion of three years from the receiving license.
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The public issue comprised a fresh issue of Rs 248.6 crore and an offer for sale of Rs 333.76 crore. The net fresh issue proceeds will be utilised for augmenting Tier-1 capital base to meet the future capital requirements.
Suryoday Small Finance Bank is a professionally managed bank led by Baskar Babu Ramachandran, founder, Managing Director and Chief Executive Officer who held leadership positions in companies like HDFC Bank, GE Capital Transportation Financial Services amongst others.
Its gross loan portfolio has grown at a CAGR of 46.98 percent during FY18-FY20 and was Rs 3,902.83 crore as of December 2020. Its cost-to-income ratio has reduced from 64.44 percent in FY18 to 47.05 percent in FY20 and was 55.39 percent in the nine months ended December 2020.