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The fund is raised at the upper price band of Rs 305 per equity share

Suryoday Small Finance Bank Limited allocates 5,557,920 equity shares at the upper price band of Rs 305 per equity share

Non-anchor offer to open on Wednesday, March 17, 2021 to Friday, March 19, 2021

Marquee anchor investors includes ICICI Prudential Life Insurance, 238 Plan Associates LLC (MIT*), Birla Mutual Fund, Axis Mutual Fund, SBI Life Insurance, Ashoka India Opportunities Fund (White Oak Capital Management), IDFC Mutual Fund, ICICI Lombard Insurance Company, Goldman Sachs (Singapore) amongst others

 

Mumbai, NFAPost: Suryoday Small Finance Bank Limited (the “Bank’), allotted 5,557,920 equity shares to 13 anchor investors and raised Rs 170.13 crore ahead of the company’s proposed IPO at the upper price band of Rs 305 per equity share.

The bank is among the leading SFBs in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020.

The Issue comprises of a fresh issue of up to 8,150,000* Equity Shares (the “Fresh Issue”) and an offer for sale of up to 10,943,070 Equity Shares (“the Offer for Sale”), comprising up to 4,387,888 Equity Shares by International Finance Corporation, up to 2,021,952 Equity Shares by Gaja Capital Fund II Limited, up to 1,889,845 Equity Shares by DWM (International) Mauritius Ltd, up to 750,000 Equity Shares by HDFC Holdings Limited, up to 1,500,000 Equity Shares by IDFC First Bank Limited, up to 100,000 Equity Shares by Americorp Ventures Limited, up to 186,966 Equity Shares Kotak Mahindra Life Insurance Company Limited and up to 106,419 Equity Shares by Gaja Capital India AIF Trust (represented by its trustee, Gaja Trustee Company Private Limited) (collectively, referred to as the “Selling Shareholders” and such Equity Shares the “Offered Shares”).

Paid-up equity share

The Issue includes a reservation of up to 500,000 Equity Shares, (constituting up to 0.47% of the post-Issue paid-up equity share capital), for subscription by eligible employees (the “Employee Reservation Portion” and the Issue less the Employee Reservation Portion is hereinafter referred to as “Net Issue”.

The Bank and the Selling Shareholders in consultation with the Book Running Lead Managers, may offer a discount of up to 10% (equivalent of Rs 30 per equity share) of the issue price to eligible employees bidding in the Employee Reservation Portion (“Employee Discount”).

Pre-IPO placement

*The bank has undertaken a Pre-IPO placement of 5,208,226 Equity Shares comprising

(i) a private placement of 3,084,833 Equity Shares to SBI Life Insurance Company Limited for cash at a price of Rs 291.75 per Equity Share aggregating to approximately ₹900.00 million;

(ii) a private placement of 1,713,795 Equity Shares to Axis Flexi Cap Fund for cash at a price of Rs 291.75 per Equity Share aggregating to approximately Rs 499.99 million;

(iii) a private placement of 342,760 Equity Shares to Axis Equity Hybrid Fund for cash at a price of ₹291.75 per Equity Share aggregating to approximately Rs 100.00 million; and

(iv) a private placement of 66,838 Equity Shares to Kiran Vyapar Limited for cash at a price of Rs 291.75 per Equity Share aggregating to approximately Rs 19.50 million pursuant to shareholders’ resolution dated February 13, 2021 and the resolution of the board dated February 23, 2021; (together, the “Pre-IPO Placement”).

Board resolution

The size of the Fresh Issue has been reduced by 5,208,226 Equity Shares pursuant to the Pre-IPO placement. Further, pursuant to the resolution of the Board dated March 2, 2021, the Bank has also increased the Fresh Issue size by 1,763,226 Equity Shares (within the limits for fresh issue approved by the Shareholders on July 27, 2020). Accordingly, the Fresh Issue size is up to 8,150,000 [equity shares.

Bids can be made for a minimum of 49 Equity Shares and in multiples of 49 Equity Shares thereafter.

Axis Capital Limited, ICICI Securities Limited, IIFL Securities Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the Issue.

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