Suryoday Small Finance Bank IPO Review

Suryoday Small Finance Bank IPO is ready to hit the share market on 17th March 2021. Are you thinking of investing in this IPO? If yes!! Do not worry. We have brought detailed and exact information of Suryoday Small Finance Bank IPO review that will help you to plan your investment accordingly. 

So let’s get ready !!

But before that, we must first know a little about the company that is launching this IPO. 

Suryoday Small Finance Bank Limited is a leading Small Finance Bank (SFB) based in Mumbai in India. It was incorporated in 2008 and started its services in 2017.

They provide banking services and micro-finance loans to consumers and corporates from unbanked and underbanked segments across urban and semi-urban locations. 

They also provide digital banking, NPCI payment systems, mobile technologies, and banking through traditional channels. 

Suryoday Small Finance Bank’s purpose of raising around ₹582.34 Cr via IPO is to utilize the funds to build up their Bank’s tier-1 capital base to meet their Bank’s future capital requirements. 

Also read the upcoming IPO to know about some more details. 

Suryoday Small Finance Bank IPO Review 2021 

Let us take a look at the below table for the Suryoday Small Finance Bank IPO review. 

 

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Suryoday Small Finance Bank IPO Date 

Before applying for the Suryoday Small Finance Bank IPO, you should also check the dates so that you would not miss any IPO process.

Suryoday Small Finance Bank’s Initial Public Offering is to open on 17 March 2021 (Wednesday). The offer will close after three days, i.e., on 19 March 2021.

The investors’ portion for QIB (Qualified Institutional Buyers) – 50%, NII (Non-Institutional Investor) -15%, and Retail Investors – 35%. 

Other than this, other important dates of the IPO have been tabulated below:

 

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Suryoday Small Finance Bank IPO Price

Now, we will see Suryoday Small Finance Bank IPO price in this section. 

IPO Price mainly consists of two types of prices; the Issue price and Listing price. 

The issue price of an IPO is the price at which any private company sells its IPO shares for the first time to the investors. 

On the other hand, the listing price is the price at which shares get listed on the stock exchange. In simpler words, the listing price is the opening price of shares on a listing day. 

Suryoday Small Finance Bank Limited is all set to issue around 1,90,93,070 Equity shares worth ₹582.34 Cr to the public investors via. IPO. 

The issue size includes a Fresh Issue of 81,50,000 Equity shares worth ₹248.58 Cr and an Offer For Sale of up to 1,09,43,070 Equity shares worth ₹333.76 Cr.

Besides, Suryoday Small Finance Bank will sell its shares in the ₹303-₹305 price band. 

That means the investors can bid for a minimum number of shares by investing ₹14,847, whereas they will be required to make a maximum investment of up to ₹1,93,011.

You should try to bid at a higher price band, as there are significant allotment chances. 

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Suryoday Small Finance Bank IPO GMP

Next in the Suryoday Small Finance Bank IPO Review is Suryoday Small Finance Bank GMP. 

GMP is a premium value at which IPO shares are transacted in the Grey Market before they get listed on the stock exchange. 

Besides, the GMP of an IPO changes every day as per the demand for IPO shares. 

Suryoday Small Finance Bank IPO GMP is ₹5-₹30. 

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Suryoday Small Finance Bank IPO Promoters 

The promoters of Suryoday Small Finance Bank, along with their shareholding:

• Basker Babu Ramachandran – 96%
• P. Surendra Pai – 0% 
• P.S. Jagdish – 2%
• G.V. Alankara – 2% 

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How To Apply For Suryoday Small Finance Bank IPO

To apply for an IPO online, you will need to have a Demat account with a registered stockbroker. 

There are some documents, such as PAN Card, Adhar Card, and Bank Account Number, that you will be asked for an account opening process.

Once your account is opened, you will be required to go through the following steps:

▶️ Log-in to your trading app provided by the broker.

▶️ Go to the investment section, and click on the IPO you wish to invest in. 

▶️ Put the quantity of IPO shares you wish to apply for.

▶️ Type the IPO price at which you want to bid.

▶️ Select the payment option; UPI (Unified Payment Interface) and ASBA (Application Supported by Blocked Amount).

▶️ Press the submit button.

Once you are done with this process, your application form gets submitted, and the amount will get blocked in your bank account. 

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Not having a demat account yet. Do not fret! Just fill in basic details in the form below

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Suryoday Small Finance Bank Details

This is all about Suryoday Small Finance Bank IPO Review. Now, if you are confused as to whether you should invest in this IPO or not?

So, don’t worry as this piece of information guide below will remove all your confusion.

Let us start with the company fundamentals, strengths, and risks associated with this IPO that help you plan your investment accordingly.

Suryoday Small Finance Bank is one of India’s leading small finance banks based in Navi Mumbai in 2017. They provide more retail loans as compared to normal banks. 

The company had 482 banking outlets and had a customer base of 14.3 lakh till July 31, 2020. As a bank, this company offers credit products like MFI loans, Vikas Loans, Shopkeeper Loans, etc. 

The summary of financial information has been tabulated below for easier understanding.

 

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Should You Subscribe Suryoday Small Finance Bank IPO?

Before you decide to subscribe to this IPO, you should look at various aspects of the company and IPO.

The Suryoday Small Finance Bank IPO aims to raise capital to meet the Bank’s future capital requirements, which can merit.

Besides, if we talk about the financial parameters of this company, it is overall good.

The company’s assets and revenue have increased by 60% and 62%, respectively, from FY18 to FY20.On the other hand, it has faced a loss in the same financial year due to Covid-19.

We have compiled some aspects and provided you with our insight but never invest in the share market without doing an in-depth financial analysis. 

Investors can apply for this IPO to generate short-term to long-term gains. Now let’s discuss the competitive strengths and uncertainties of the company. 

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Strengths Of Suryoday Small Finance Bank IPO

Below are the competitive strengths of Suryoday Small Finance Bank IPO:

• Diversified asset portfolio with a focus on retail operation. 
• Customer-centric approach with a focus on high-quality financial services.
• Vital credit processes and robust risk management framework.
• Track record of strong financial performance till 31 March 2020.
• Experienced and professional leadership team.

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Risks Associated With Suryoday Small Finance Bank IPO

Although, Suryoday Small Finance Bank has shown good financial growth over the financial years. But it’s better to analyze the risks related to this IPO investment as well. Some of the risks are as below: 

• Covid-19 and its continual impact are incalculable and can have an impact on a bank’s financial performance.
• There are stringent regulatory requirements and prudential norms that this bank has to follow. Its inability to comply with laws can affect its financial performance.
• Like any other bank, Suryoday Small Finance Bank’s business can also be impacted by interest rate fluctuations that could adversely affect its cash flows.
• Bank and its directors are involved in specific legal procedures that can impact the business and reputation of the bank.

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After going through the Suryoday Small Finance Bank IPO Review, we believe that you might think of investing in this IPO.  Refer to the form below and open a demat account now.

 

Know More on Upcoming IPO