Suryoday SFB IPO

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1. Suryoday Small Finance Bank Limited was incorporated under the Companies Act.

2. Received RBI license for NBFC Operations

3. Partnered with Aavishkaar Goodwell for Private Equity Funding

4. Opened 10 branches across Pune and Solapur in Maharashtra and Chittoor in Andhra Pradesh.


1. Expanded operations across Maharashtra, Andhra Pradesh, Odisha, Tamil Nadu, Karnataka, Gujarat and Rajasthan bringing the network to 70 branches with 274,000 active customers.

2. Received Equity Infusion from Lok Capital, HDFC Holdings, HDFC Life and IFC in addition to Aavishkar Goodwell.

3. Received RBI approval for NBFC-MFI Status.


1. The network expanded to include Madhya Pradesh bringing the total number of branches to 145 with 562,000 active customers.

2. Issued debt securities and obtained listing permission from the BSE Ltd. in the Wholesale Debt segment.


1. Received ‘Scheduled Commercial Bank’ Status

2. Became Member of CGTMSE – Credit Guarantee Fund Trust for Micro & Small Enterprises.

Company Bisuness: 

Micro Finance  Microfinance loans are for financially excluded borrowers with a ticket size ranging between Rs. 10,000 to Rs. 40,000. These loans are primarily given to women borrowers in the joint liability format. These are templated products which are dependent on the parameterised credit review to ensure appropriate evaluation of the borrower and better health of the portfolio. Microfinance continued to be a significant portfolio for the Bank in FY 18 and will continue to remain for FY 19.

Loan Against Property (LAP) & Housing Loan LAP is divided in M-LAP and LAP. M-LAP ranges from Rs. 1.5 lacs to Rs. 5 lacs and is collateral based lending primarily for business purpose. LAP is in the range of Rs. 10 lacs and upwards. Housing loans are given to salaried as well as credible self-employed borrowers including to financially excluded borrowers

MSME loans MSME loans are provided as unsecured loans to retail borrowers such as shopkeepers and grocers. These are templated products with the ticket sizes in the range of Rs. 1.5 lakhs to 5 lakhs. These are unsecured loans and backed by post-dated cheques. During the year, the Bank introduced a microloan for shopkeepers with a ticket size of approximately Rs. 1 Lakh including customers having a good track record with the Bank and are in the need for the higher loan amount. Accordingly, the Bank has segregated its sourcing strategy based on customer profile. Microloans with a ticket size of Rs. 1 lakh is sourced by inclusive finance cluster while retail asset cluster (non-inclusive finance) will source customers with ticket size upwards of Rs. 5 Lakh. Notably, the Bank has witnessed excellent portfolio quality for microloans with a ticket size of approximately Rs. 1 lakh.

Commercial Vehicle Loans The Bank introduced CV loans in later part of the year and includes primarily new commercial vehicles. The ticket sizes are in the range of Rs. 15 lakhs to Rs. 35 lakhs. The key focus will be to fund credible borrowers and to build a stable portfolio.

Financial Intermediary Group (FIG) Loans  FIG loans are introduced for on-lending to NBFCs including microfinance companies. The Bank has separate verticals to focus on FIG lending having significant experience in lending to financial institutions.

SME lending  The Bank has started lending to SME borrowers with excellent credit history. SME borrowers are primarily small and medium private and public limited companies, partnership firms etc. The Bank has centralized sourcing, credit underwriting, and loan processing to keep strong control over the sourcing profile of the customer and portfolio monitoring.


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Objects of the Suryoday SFB IPO:

1. OFS (333 Crores) This money will go to the selling investors 2. Fresh Issue (248 Crores) The net Proceeds from the Fresh Issue will be utilized towards augmenting the Bank's Tier-1 capital base to meet the Bank's future capital requirements.

Suryoday SFB IPO Details:

Open Date: Mar 17 2021
Close Date: Mar 19 2021
Total Shares: 19,093,070
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 582 Cr.
Lot Size: 49 Shares
Issue Price: ₹ 303-305 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 30 2021

Promoters And Management:

1. Dr. Mrs. Sheela Bhide (Chairperson - Independent Director) 2. Mr. R. Ramachandran (Independent Director) 3. Mr. Jyotin Mehta (Independent Director) 4. Mr. R. Baskar Babu (MD & CEO)

Financials of Suryoday SFB IPO:

Particulars (In Crores) FY15 FY16 FY17 FY18 FY19 FY20
Advances 582 983 834 1596 2711 3531
Gross NPA 0.13% 0.18% 6.15% 3.15% 1.81% 2.79%
Revenue 180 225 255 325 599 854
PAT 19 27 15 10 86 110
Shares 3.69 3.83 6.40 6.74 8.15 8.65
EPS 5.38 7.52 3.01 1.50 12.79 13.78

Comparison With Peers:

As per RHP, Suryoday Small Finance Bank has Ujjivan SFB, CreditAccess Grameen, Spandana Sphoorty, Bandhan Bank and AU SFB as its listed peers.
Peer company P/B
Ujjivan SFB 1.89x
CreditAccess Grameen 3.92x
Spandana Sphoorty 1.45x
Bandhan Bank 3.73x
AU SFB 8.90x
Suryoday Small Finance Bank 2.44x

Recommendation on Suryoday SFB IPO:

Review and Recommendation of InvestorZone are 6/10 1. The advances have grown from 580 crores to 3500 Crores in the last 5 years. 2. Bank has manageable NPA of 2.80% in the FY20. 3. Bank has book value of 125 as on 31.03.2020. So, asking P/B is 2.44x (reasonable). 4. R Bhaskar Babu is a seasoned banker having previously worked with HDFC, has managed and grown a bank well.

Registrar of Suryoday SFB IPO:

  1. Kfin Technology Private Limited

Company Address:

1101, Sharda Terraces, Plot No. 65, Sector 11, CBD Belapur, Navi Mumbai 400 614 Tel: +91 91 22 40435800 Website:

Discussion on Suryoday SFB IPO:


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