InvestorQ : What was the response to the IPO of Suryoday Small Finance Bank IPO?
swati Bakhda made post

What was the response to the IPO of Suryoday Small Finance Bank IPO?

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Sam Eswaran answered.
3 weeks ago
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In a busy week where the IPO market was dominated by larger than life names like Nazara Technologies owned by larger than life investors, the Suryoday Small Finance Bank IPO got relatively modest subscription. The Rs.580-crore IPO was oversubscribed just about 2.7 times. The Suryoday IPO consisted of fresh fund raising of Rs.247 crore and an offer for sale worth Rs.333 crore done at a price band of Rs.303-305 per share.

Based on the upper band of the IPO, the SFB is likely to start off with starting market cap of Rs.3,237 crore. The IPO was neither too cheap nor too expensive at 2.7 times book value on annualized nine-month earnings. What could have dampened the response was the slew of IPOs and also the fact that the valuation was at a slight premium of more established SFB names in the market like Ujjivan SFB and Equitas SFB.

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