Suryoday Small Finance Bank (SFB) has joined the bandwagon of banks planning to launch their IPOs next year. The Navi Mumbai-based bank plans to raise up to INR1,000 crore (INR10 billion) through the share sale. Suryoday SFB IPO will involve issuance of fresh shares as well as sale by existing shareholders and the latter is expected to garner around INR400 crore to current investors.
“The IPO will come by September 2020. We are looking to raise Rs 400 crore through OFS, while further fresh equity infusion will take the IPO size between Rs 600 and Rs 1,000 crore,” said R Baskar Babu, Managing Director and CEO of the bank.
The bank currently has a network of 382 branches but plans to expand the number to 600 by March 2020. “We are planning to increase our asset portfolio to approx INR4,500-5,000 crore, while the deposits are expected to increase to INR3,500-4,000 crore by end of the fiscal,” said Babu about the bank’s plans which recently gained presence in Gujarat. The bank currently has asset portfolio of about INR3,000 crore and deposit book of about INR1,800 crore.
Suryoday Microfinance received RBI nod to convert into an SFB in 2016 and it started banking operations in January 2017. The bank counts HDFC, HDFC Life, IFC, Lok Capital, TVS Capital Funds, Gaja Capital among its investors.
Suryoday SFB IPO: Groundwork yet to start
While the bank is gunning for the IPO next year, it is yet to start the groundwork for the same. No merchant bank has been hired so far to manage Suryoday SFB IPO and a draft prospectus with market regulator SEBI is yet to be filed. Nevertheless, the bank remains hopeful of fulfilling compliance requirements by December before submitting paperwork to SEBI.
Apart from Suryoday, several other SFBs are in queue to launch their IPOs. These include Fincare, Jana Small Finance Bank (formerly Janalakshmi Financial Services), Utkarsh Small Finance Bank and Capital Small Finance Bank.