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Suryoday Small Finance Bank Joins IPO Bandwagon Amid Covid

Mumbai:  Despite the uncertain economic situation, there has, off late, been a spurt in initial public offerings (IPO) to raise funds amid the pandemic.

Suryoday Small Finance Bank Ltd (SSFBL) has joined the IPO bandwagon as it has filed its Draft Red Herring Prospectus with the SEBI.

SSFBL has filed its prospectus for an IPO of up to 2,00,61,796 equity shares of face value Rs 10 each. The IPO comprises fresh issuance of 1,15,95,000 equity shares and an offer for sale (OFS) of up to 84,66,796 equity scrips by existing shareholders, as per the draft prospectus.

The small finance bank plans to utilise the net proceeds from the issue towards augmenting its Tier-1 capital base with a view to to meet future capital requirements.

Shares of the bank will be listed on the BSE and the NSE.

The investors offering shares through the OFS route include the International Financial Corporation (IFC), Gaja Capital, HDFC Holdings, IDFC First Bank, Kotak Mahindra Life Insurance Company, DWM (International) Mauritius Ltd, and Americorp Ventures.

The small finance bank, which has over 20 institutional investors including institutional investors, development funds, and private equity investors, is just one of the several companies which are in the process to tap the primary market to raise equity capital in FY21.

According to data made available by Geojit Financial Services, as many as 80 firms have approached the SEBI to get the necessary approvals for tapping the primary market through the rest of the current fiscal.

Together, these firms are planning to raise equity capital aggregating to Rs 51,515 crore from the primary market, the brokerage said.

Two companies, Happiest Minds Technologies Ltd, and Route Mobile Ltd, earlier this month, witnessed stellar demand for their IPOs. Happiest Mind got subscribed 151 times while Route Mobile got subscribed 73 times.

(IANS)

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