Suryoday Small Finance Bank shares listed today at a discount to the IPO price tag. Stocks of Suryoday SFB started trading at Rs 293 per share, down 3.93% or Rs 12 from the situation price tag of Rs 303-305 apiece. The debutant stock had a industry capitalization of Rs 3,109 crore on listing. Suryoday Small Finance Bank entered Dalal Street earlier final week to raise Rs 582 crore by means of the listing of its shares on the bourses which was an amalgamation of a fresh situation and an present for sale. Overall, 19,093,070 equity shares of Suryoday SFB have been provided in the IPO.
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Having a consumer base was 1.44 million and an employee base of 4,770 personnel, Suryoday SFB is a top institution in the nation operating 554 banking outlets. Post situation, the promoter shareholding in Suryoday SFB will come down to 28% from 30.3% earlier. Meanwhile, the public shareholding will boost to 72% from 69.7% pre-situation.
Suryoday SFB has noticed its net interest margin inch up from 10.4% at the finish of FY18 to 11.92% in FY20. Net profit of the firm has moved larger from Rs 11.49 crore to Rs 111 crore amongst FY18 and FY20. Gross non-performing assets of the SFB dropped from 3.54% in the fiscal year 2018 to 1.81% in the monetary year 2019. However, in FY20 the identical jumped to 2.79%. However, the provision coverage ratio is powerful at 84.71%.
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Suryoday Small Finance Bank will join the likes of AU Small Finance Bank, Equitas Small Finance Bank, and Ujjivan Small Finance Bank on the bourses. These 3 listed players of the SFB sector account for 63% of the sector AUM, according to HDFC Retail Research. Meanwhile Suryoday Small Finance Bank accounted for merely 4% of the sector AUM, at the finish of the preceding monetary year.
On the valuation front, Suryopday SFB may well list at a discount to peers. “Considering the adjusted book value of Rs 135.64 per share on a post-issue basis, the company is going to list at a P/B of 2.25 times while its peers such as AU Small Finance Bank is trading at 8.44 times P/B,” stated analysts at Marwadi Financial Services.