Suryoday Small Finance Bank
Mainboard₹582 Cr issue
-3.93%
Listing gain over issue price
Issue size
₹582 Cr
1 lot at cut-off
₹14,945
Lot size
49shares
Open
17 Mar 2021
Close
19 Mar 2021
Allotment
24 Mar 2021
Listing
26 Mar 2021
Listing performance
Issue price
₹305
Listed at
₹293
Listing-day close
₹277.80
Latest price
₹132.49
Close on 23 Oct 2026
Listing gain
-3.93%
Return since issue
-56.56%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 17 Mar 2021 – 19 Mar 2021
- Listing date
- 26 Mar 2021
- Face value
- ₹10 per share
- Issue price
- ₹305 per share
- Lot size
- 49 shares
- Total issue size
- ₹582 Cr
- Market cap at offer price
- ₹3,237 Cr
- Promoter holding
- 30.35% → 30.35% pre-issue → post-issue
- ISIN
- INE428Q01011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- Unit No.1101, Sharda Terraces, Plot No.65, Sector 11, CBD Belapur, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 55,77,920 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 49 shares per lot, in multiples, at ₹305
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 49 | ₹14,945 |
| Retail (max) | 13 | 637 | ₹1,94,285 |
| S-HNI (min) | 14 | 686 | ₹2,09,230 |
| S-HNI (max) | 66 | 3,234 | ₹9,86,370 |
| B-HNI (min) | 67 | 3,283 | ₹10,01,315 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
55,77,920
Anchor portion
₹170 Cr
at ₹305 per share
Valuation and performance
Valuation at offer price
₹305 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹3,237 Cr |
About Suryoday Small Finance Bank
Suryoday Small Finance Bank Limited commenced operations as a small finance bank on January 23, 2017, following receipt of the RBI Final Approval. The bank was originally incorporated as Suryoday Micro Finance Private Limited in 2008 and operated as a microfinance non-banking financial company (NBFC-MFI) for over a decade before transitioning to an SFB. The bank serves customers in the unbanked and underbanked segments of India, promoting financial inclusion. It generates revenue through interest income on loans, interest paid on deposits, and treasury operations. The bank has diversified its loan portfolio from traditional microfinance operations to include non-micro banking loans and other secured products.
Company Analysis
from RHPSuryoday Small Finance Bank is a licensed small finance bank in India providing inclusive finance to underbanked and unbanked segments through micro-loans and diverse banking products.
Suryoday Small Finance Bank Limited commenced operations as a small finance bank on January 23, 2017, following receipt of the RBI Final Approval. The bank was originally incorporated as Suryoday Micro Finance Private Limited in 2008 and operated as a microfinance non-banking financial company (NBFC-MFI) for over a decade before transitioning to an SFB. The bank serves customers in the unbanked and underbanked segments of India, promoting financial inclusion. It generates revenue through interest income on loans, interest paid on deposits, and treasury operations. The bank has diversified its loan portfolio from traditional microfinance operations to include non-micro banking loans and other secured products.
bankingfinancial servicesmicrofinancesmall finance
Objects of the Issue
- Augmenting our Bank's Tier – 1 capital base to meet our Bank's future capital requirements [●] p.16
- Augmenting Tier-1 capital base to meet future capital requirements for organic growth and expansion and to comply with regulatory requirements for enhanced capital base p.51
- Augmenting our Bank's Tier – 1 capital base to meet our Bank's future capital requirements p.106
- General corporate purposes and to comply with regulatory requirements for enhanced capital base p.106
- Not specified in this document part
- Not specified in this part of the document p.303
Issue Structure
- Total Issue
- Up to 19,093,070 Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to 8,150,000 Equity Shares aggregating up to ₹ [●] million
- Offer for Sale
- Up to 10,943,070 Equity Shares aggregating up to ₹ [●] million by the Selling Shareholders
- Price Band
- ₹ [●] per Equity Share (Floor Price) and ₹[●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The bank earns revenue primarily through net interest income (the difference between interest earned on advances and interest expended on deposits), treasury operations income from investments and sale of investments, and other banking services. As of March 31, 2020, advances to inclusive finance (JLG) customers represented 75.85% of gross loan portfolio, with the remainder comprising non-micro banking loans including commercial vehicle loans, secured business loans, housing loans, and MSME loans.
Business Segments
Joint Liability Group lending model providing collateral-free, small ticket-size loans to economically active women belonging to weaker sections
Diversified loan portfolio including commercial vehicle loans, secured business loans, housing loans, loans to financial intermediaries, overdraft facilities, MSME loans, and micro business loans
Joint liability group loans for first-time borrowers with limited access to formal banking
Financing for new commercial vehicles used for market loading, contract transportation and logistics services
Distribution of third-party insurance, mutual fund products, pension products; sale of PSL certificates
Provides micro loans to individuals in self-help groups and joint liability groups, with ticket sizes typically below ₹2.5 million, targeting low-income borrowers
Provides financing for purchase of vehicles
Provides loans secured by residential property mortgages for purchase or construction of affordable housing
Provides loans to micro, small and medium enterprises for working capital and fixed asset financing
Includes other retail and commercial lending products
Provides group loans built on peer-guarantee (joint liability group) model to typically economically active women in unbanked and underbanked urban and semi-urban locations for income-generating activities such as eateries, retail trading shops, and animal husbandry, with ticket sizes between ₹10,000 and ₹52,500 and tenures up to two years
Provides financing to fleet operators engaged in road transport and commercial purposes, primarily for heavy and medium commercial goods vehicles and buses, with ticket sizes ranging between ₹250,000 and ₹19,666,000 and tenure of 12 months to five years
Provides loans to self-employed/salaried applicants for purchase, construction, improvement/restoration of non-agricultural town planning approved property with focus on affordable housing, with ticket sizes between ₹100,000 and ₹8,000,000 and tenure from five years up to 22.58 years
Provides unsecured loans to entities/individuals engaged in business activities including small shops, traders, retail stores, small manufacturing units for working capital and expansion needs, with ticket sizes between ₹200,000 and ₹10,000,000 and tenure of 12 months to three years
Provides secured loans to MSMEs/SMEs and corporates for business purposes including funding growth and expansion, with ticket sizes between ₹207,000 and ₹30,000,000 and tenure between three and 15 years
Provides unsecured loans to self-employed individuals operating small enterprises in urban and semi-urban locations, typically extended to existing group loan customers for working capital or capital investment, with ticket sizes between ₹100,000 and ₹500,000 and tenure between 12 months and three years
Extends debt capital support for onward lending to financial intermediaries such as NBFCs, MFIs, and HFCs operating in retail segments including housing finance, loans against property, microfinance, and vehicle finance, with ticket sizes between ₹30 million and ₹250 million and tenure of 12 months to five years
Accepts deposits including current accounts, savings accounts, salary savings accounts, recurring deposits, fixed deposits, tax saver deposits, non-resident deposits, and certificates of deposit from retail and institutional customers across India
Microfinance loans for low-income borrowers
Financing for commercial vehicles
Home loans for affordable housing
Small business loans for entrepreneurs
Collateral-backed business financing
Loans to financial intermediaries and groups
Performs liquidity management activities for various business segments. Transfer pricing is based on internally approved yield curve or at an agreed transfer rate on the funding provided by treasury to another business segment.
Serves retail customers through a branch network. Exposures are classified under retail banking taking into account the status of the borrower, nature of product, granularity of the exposure and quantum thereof. Revenues derived from interest and fees earned on retail loans, interest on deposits placed as collateral with banks and financial institutions.
Includes all advances to companies and statutory bodies, which are not included under Retail banking. Revenues consist of interest and fees on loans made to customers.
Includes other items not attributable to any particular business segment. This segment includes income from para banking activities such as distribution of third party product and the associated costs.
Collateral-free loans to economically active women belonging to weaker sections using joint liability group-lending model
Loans provided to fleet owners and retail customers for commercial vehicles
Loans provided to middle and low income segment for non-agricultural property purchases
Loans for customers engaged in small businesses and agricultural allied activities not part of formal banking infrastructure
Loans to SME/MSME/corporates and micro and small enterprises
Current accounts, savings accounts, salary savings accounts, recurring deposits, fixed deposits and other deposit products sourced from retail and institutional customers across India
Distribution of third-party life and general insurance products and mutual fund products to customers
SWOT Analysis
Strengths
- • Leading SFB with strong operational metrics(p.16)
- • Over a decade of experience in underbanked/unbanked segments(p.16)
- • Established SFB license and regulatory approval(p.1)
- • Diversified loan portfolio reducing microfinance dependence(p.16)
- • Established SFB with growing loan portfolio and branch network(p.40)
- • Strong deposit growth with significant retail base(p.39)
- • Strong credit ratings from major agencies(p.39)
- • Strong capital adequacy position relative to peers(p.125)
- • Highest deposit growth rate among major SFBs(p.125)
- • Best cost-to-income ratio among SFBs(p.127)
- • Second highest return on assets among SFBs(p.127)
- • Second highest AUM growth rate among SFBs(p.124)
- • High yield on advances portfolio(p.127)
- • Leading SFB with operational excellence and lowest cost-to-income ratio(p.146)
- • Highest capital adequacy ratio among SFBs providing growth capacity(p.145)
- • Strong credit processes and low portfolio delinquency(p.148)
- • High customer retention and extensive digital adoption in field operations(p.146)
- • Strong deposit growth with increasing retail deposit base reducing funding costs(p.145)
- • Evolved into an SFB with regulatory approvals and license(p.187)
- • Strong growth in customer base and geographic expansion(p.187)
- • Consistent growth in capital adequacy and profitability(p.232)
- • Institutional shareholding and investor confidence(p.187)
- • Diversified product portfolio addressing multiple customer segments(p.187)
- • Improving deposit mobilization with growing retail customer base(p.221)
- • Strong capital adequacy ratio(p.269)
- • Rapid deposit growth(p.257)
- • Growing asset base and loan portfolio(p.259)
- • Diversified borrowing sources(p.257)
- • Broad geographic presence(p.262)
- • Lowest cost-to-income ratio among SFBs in India(p.309)
- • Highest CRAR among all SFBs in India as of March 31, 2020(p.310)
- • Strong deposit growth with high retail deposit composition(p.310)
- • Strong focus on inclusive finance and financial inclusion through diversified product portfolio(p.309)
- • Operational presence across 13 states with significant unbanked rural centre coverage(p.309)
- • Low NPA levels with strong provision coverage(p.311)
- • Institutional investor backing from reputed development finance and private equity institutions(p.310)
- • Regulatory compliance and market access eligibility(p.348)
- • Strong financial metrics meeting IPO eligibility criteria(p.348)
- • Consistent growth in net tangible assets and profitability(p.349)
Weaknesses
- • Heavy dependence on JLG (microfinance) advances(p.27)
- • Majority of advances are unsecured(p.38)
- • High concentration in three states(p.33)
- • Dependence on limited large depositors(p.34)
- • Pledged promoter shareholding creates dilution risk(p.33)
- • Limited operating history as SFB(p.31)
- • NPA vulnerability in unsecured JLG portfolio(p.27)
- • Past corporate filing irregularities and missing records(p.36)
- • Material litigation against Directors(p.18)
- • Negative cash flows from operations(p.35)
- • High dependence on refinancing as funding source(p.39)
- • Low CASA ratio limiting cost-efficient deposits(p.45)
- • Significant exposure to fraud and operational losses(p.40)
- • Limited credit history of customer base increases default risk(p.43)
- • Breach of covenants in past borrowing arrangements(p.43)
- • Heavy reliance on outsourced technology and service providers(p.49)
- • High portfolio concentration in microfinance(p.126)
- • Elevated asset quality concerns in microfinance segment(p.127)
- • Significant credit cost burden(p.127)
- • Pledged promoter shares creating control risk(p.84)
- • High leverage with rising debt-to-equity ratio(p.145)
- • Deteriorating net interest margins under pandemic conditions(p.145)
- • Geographic concentration in two states comprising 73% of deposits(p.147)
- • Commercial vehicle loan portfolio deterioration with 4.20% GNPA ratio(p.158)
- • Sharp decline in disbursements during pandemic with 37% year-on-year contraction(p.155)
- • Concentration of loans in microfinance/inclusive finance segment(p.227)
- • Rising NPA levels across specific product segments(p.236)
- • High credit cost and provisioning requirements(p.219)
- • Dependence on promoter for executive leadership and shareholder agreements(p.208)
- • Facility agreements with substantial pledge obligations and call options(p.188)
- • High concentration of NPA in transport operators segment(p.282)
- • Net profit decline in 9-month period(p.250)
- • High provision expense(p.250)
- • Elevated restructured accounts(p.278)
- • COVID-19 related contingent provision holding(p.287)
- • Significant decline in profitability in nine months ended December 31, 2020 due to COVID-19 impact(p.323)
- • High dependence on JLG portfolio with asset concentration risk(p.313)
- • Increased COVID-19 provisions reducing profitability(p.312)
- • High debt-to-equity ratio indicating leverage(p.308)
- • Supreme Court interim order restricting NPA classification affecting asset quality measurement(p.312)
- • Concentration of monetary assets requiring management(p.349)
Opportunities
- • Expansion of product portfolio beyond JLG(p.36)
- • Growth through new banking outlets in rural areas(p.28)
- • Financial inclusion market expansion(p.16)
- • Deposit growth through payment bank partnerships(p.35)
- • MSME and SME loan origination through fintech partnerships(p.35)
- • Expansion into new geographic markets and customer segments(p.40)
- • Growing SFB sector with favorable regulatory environment(p.41)
- • Expansion of fee and commission-based activities(p.45)
- • Diversification beyond microfinance into higher-growth segments(p.121)
- • Substantial growth potential in affordable housing segment(p.134)
- • Untapped MSME lending market with government support(p.138)
- • Significant microfinance growth potential in underserved geographies(p.130)
- • Market share gains from weak NBFCs due to funding constraints(p.135)
- • Digital transformation enabling cost reduction and customer acquisition(p.119)
- • Growing demand for used commercial vehicle financing as operators shift to cheaper BS-IV vehicles(p.143)
- • Expansion into new geographies beyond Maharashtra, Tamil Nadu and Odisha(p.151)
- • Increasing microfinance industry growth providing scale opportunities(p.150)
- • Technology-driven platform expansion including digital loan origination and e-KYC(p.151)
- • Leveraging business correspondent network to expand rural financial inclusion(p.152)
- • Expansion into tier-2/tier-3 cities and rural areas with underserved populations(p.234)
- • Growth in retail deposits and CASA customer base(p.222)
- • Expanding commercial vehicle and affordable housing loan portfolios(p.227)
- • Digital banking adoption and channel expansion(p.243)
- • Growing inclusive finance addressable market in India(p.186)
- • Expansion of retail banking segments(p.293)
- • Growth in microfinance and agricultural lending(p.282)
- • Residential mortgage lending expansion(p.281)
- • Digitalization and branch network expansion(p.260)
- • Expansion of product portfolio to capture higher-income customer segments(p.313)
- • Leverage existing asset customer base for liability growth through cross-selling(p.313)
- • Growth through technology adoption and fintech partnerships(p.311)
- • Geographic expansion in newer markets and deeper penetration in existing markets(p.311)
- • Expansion through business correspondent and payment bank partnerships(p.311)
- • Growth in affordable housing finance segment(p.313)
- • Access to diversified investor base through public market listing(p.348)
- • Capital mobilization through Fresh Issue and Offer for Sale(p.375)
- • Availability of Employee Stock Option Plans for incentivization(p.394)
Threats
- • COVID-19 pandemic impact on collections and asset quality(p.25)
- • Interest rate volatility and RBI policy changes(p.30)
- • Regulatory compliance risks and SFB-specific stringent requirements(p.28)
- • Microfinance sector adverse developments and regulation(p.27)
- • Regional economic downturns affecting key states(p.33)
- • Loan waiver programs reducing repayment discipline(p.38)
- • Competition from larger banks and fintech players(p.34)
- • Supreme Court and RBI restrictions on Aadhaar e-KYC(p.31)
- • Economic downturn affecting unorganized sector borrowers(p.27)
- • Natural calamities and regional disasters(p.27)
- • Intense competition in banking and microfinance sector(p.41)
- • Regulatory changes and RBI supervision risks(p.39)
- • Deterioration in commercial vehicle finance sector(p.41)
- • Economic slowdown and macroeconomic volatility in India(p.53)
- • COVID-19 pandemic disruptions to operations and credit quality(p.52)
- • Cyber threats and IT system vulnerabilities(p.47)
- • Rising inflation and interest rate pressures(p.55)
- • Credit information infrastructure limitations(p.55)
- • COVID-19 pandemic severely impacting target customer segment(p.122)
- • Cyclical deterioration of microfinance asset quality during stress(p.122)
- • Economic slowdown impacting affordability and loan demand(p.134)
- • Regulatory capital requirements constraining growth(p.117)
- • Increased competition from well-capitalized universal banks(p.141)
- • Mandatory deposit insurance increase creating competitive pressure on deposits(p.123)
- • Sharp projected decline in commercial vehicle financing market by 26-28% in Fiscal 2021(p.142)
- • Expected deterioration in CV loan portfolio through increased surrenders of vehicles post-moratorium(p.142)
- • Government unable to support infrastructure development due to pandemic resource allocation(p.142)
- • Increased competition from SFBs and other financial institutions(p.143)
- • Supply chain disruption and reduced private consumption impacting loan demand(p.142)
- • Economic slowdown and demonetization impacts on borrower repayment capacity(p.236)
- • COVID-19 pandemic creating credit and operational uncertainties(p.240)
- • Regulatory changes and RBI lending restrictions on microfinance(p.232)
- • Increased competition from larger banks and fintech in small finance space(p.236)
- • Concentration risk in deposit base geographically and by customer(p.223)
- • Volatility in interest rates affecting lending spreads and cost of funds(p.218)
- • Regulatory moratorium impact on NPA classification(p.277)
- • Asset quality deterioration in non-priority sector(p.282)
- • Economic slowdown impacting credit growth(p.287)
- • Liquidity and funding challenges(p.257)
- • COVID-19 pandemic impact on operations(p.287)
- • Severe COVID-19 impact on collections and disbursements(p.311)
- • Risk of increased NPAs due to COVID-19-induced economic hardship(p.311)
- • Intense competition from established scheduled commercial banks and other NBFCs(p.315)
- • Increased competition from new SFB entrants following RBI on-tap licensing guidelines(p.315)
- • Restrictive regulatory requirements limiting business scope(p.312)
- • Interest rate volatility affecting net interest margins and profitability(p.313)
- • Dependence on continued deposit growth to fund loan portfolio expansion(p.313)
- • Regulatory restrictions on foreign ownership and FPI limits(p.384)
- • Regulatory requirement for RBI approval on shareholding above 5%(p.375)
- • Dependency on listing and trading approvals from stock exchanges(p.373)
- • Minimum subscription requirements and refund obligations(p.374)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Baskar Babu Ramachandran | Promoter | 11.52% | — |
| P. Surendra Pai | Promoter | — | — |
| P. S. Jagdish | Promoter | — | — |
| G. V. Alankara | Promoter | — | — |
| Baskar Babu Ramachandran | Promoter | 12.60% | 11.63% |
| P. Surendra Pai | Promoter | — | — |
| P. S. Jagdish | Promoter | — | — |
| G. V. Alankara | Promoter | — | — |
| IFC | Investor/Selling Shareholder | — | — |
| Baskar Babu Ramachandran | Promoter | 12.52% | — |
| P. Surendra Pai | Promoter (jointly with Savita S. Pai) | 13.71% | — |
| P. S. Jagdish | Promoter | 3.37% | — |
| G. V. Alankara | Promoter | 0.51% | — |
| Baskar Babu Ramachandran and associates | Promoter/Founder | — | — |
| Baskar Babu Ramachandran | Promoter | 12.59% | — |
| P. Surendra Pai | Promoter | — | — |
| P. S. Jagdish | Promoter | — | — |
| G. V. Alankara | Promoter | — | — |
| IFC | Selling Shareholder | — | — |
| Gaja Capital Fund II Limited | Selling Shareholder | — | — |
| DWM (International) Mauritius Ltd | Selling Shareholder | — | — |
| HDFC Holdings Limited | Selling Shareholder | — | — |
| IDFC FIRST Bank Limited | Selling Shareholder | — | — |
| Americorp Ventures Limited | Selling Shareholder | — | — |
| Kotak Mahindra Life Insurance Company Limited | Selling Shareholder | — | — |
| Gaja Capital India AIF Trust | Selling Shareholder | — | — |
| Baskar Babu Ramachandran (R. Baskar Babu) | Promoter/Key Promoter | — | — |
| P. Surendra Pai | Promoter | — | — |
| P.S. Jagdish | Promoter | — | — |
| G.V. Alankara | Promoter | — | — |
Leadership
Baskar Babu Ramachandran · Managing Director and Chief Executive Officer
Ramachandran Rajaraman · Part-time Chairperson
Geeta Krishnan · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Suryoday Small Finance Bank IPO FAQs
What is the lot size of Suryoday Small Finance Bank IPO?
The minimum lot size of Suryoday Small Finance Bank IPO is 49 shares. One lot costs ₹14,945 at the cut-off price.
When does Suryoday Small Finance Bank IPO open and close?
Suryoday Small Finance Bank IPO opened for subscription on 17 Mar 2021 and closed on 19 Mar 2021.
What is the listing date of Suryoday Small Finance Bank IPO?
Suryoday Small Finance Bank IPO listed on 26 Mar 2021.