InvestorQ : What are the important aspects of Sarvodaya Small Finance Bank’s (SSFB) IPO?
nishi Shah made post

What are the important aspects of Sarvodaya Small Finance Bank’s (SSFB) IPO?

Anushri Vasa answered.
5 months ago
SSFB’s initial public offering (IPO) will open on open on 17th March, with the issue price fixed at Rs303-305 a share. The offer will close on 19th March. The IPO of up to 19.09mn shares comprises a fresh issue of 8.15mn shares and an offer for sale of up to 10.94mn shares by existing promoters and shareholders.

At the upper-end price band, the lender may raise over Rs582cr. Investors can make bids for a minimum of 49 equity shares and in multiples thereafter, translating to a minimum investment of Rs 14,945. Not more than 50% of the net issue will be reserved for qualified institutional investors (QIBs), 35%of the portion for retail investors, and not less than 15 percent for non-institutional investors. Along with this, 5 lakh equity shares will be reserved for eligible employees. The bank had raised nearly Rs 152 crore through its pre-IPO placement issue of 52,08,226 equity shares, at a price of Rs 291.75 per share.

The bank will utilize the fresh issue proceeds for augmenting Tier – 1 capital base to meet future capital requirements. Axis Capital, ICICI Securities, IIFL Securities, and SBI Capital Markets are the book running lead managers to the issue.

The finalization of the basis of allotment for SSFB’s IPO will be done on 24th Mar 2021, and the allotted shares will be credited to your Demat account by 25th Mar 2021. The tentative date for listing is 30th Mar 2021.

IPO Snapshot:
Face ValueRs 10
Price BandRs 303 to 305
Subscription dateMar17-Mar19
Listing AtBSE, NSE
Min. Order Quantity49 Shares
Listing DateMar 30, 2021
Offer for SaleRs 333.76 Cr
Fresh IssueRs 248.58 Cr
IPO SizeRs 582.34 Cr