Suryoday Small Finance Bank gets Sebi's nod to launch IPO

New Delhi: Suryoday Small Finance Bank has received capital markets watchdog Sebi's go ahead to float an initial share-sale.

The initial public offering (IPO) comprises fresh issuance of 1,15,95,000 equity shares and an offer for sale of up to 84,66,796 equity scrips by existing shareholders, according to the draft papers filed with Securities and Exchange Board of India (Sebi). Those offering shares through the OFS (offer for sale) route include International Financial Corporation (IFC), Gaja Capital, HDFC Holdings, IDFC First Bank, Kotak Mahindra Life Insurance Company, DWM (International) Mauritius Ltd and Americorp Ventures.

The bank, which filed its preliminary papers for the IPO in October, obtained Sebi's observation on December 23, an update with the markets watchdog showed on Monday. Sebi's observation is very necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.

The bank has proposed to utilise the net proceeds from the fresh issue towards augmenting its Tier-1 capital base to meet future capital requirements. The small finance bank has over 20 institutional investors with a mix of institutional investors, development funds, and private equity investors.