Loss on the listing day of Suryoday SFB

On March 26, 2021, the Suryoday Small Finance Bank opened with a 3.9 percent loss on BSE.

The price of the share was Rs 292 in NSE with a 4.26 percent discount.

The issue price on BSE was Rs 305. The intraday high priced at Rs 295.95 and low at Rs 271.15.

According to the experts, the lack of enthusiasm occurred due to covid-19 spread. Additionally, the spread led to increasing in the non-performing assets.

The third quarter of FY 21 reflects the gross NPA at 0.8 percent. In addition, the net NPA amounts to 0.3 percent.

Though, the valuation of the bank remains reasonable. However, the upcoming quarter may have an impact on asset quality.

According to the advice, the investor can pull out the shares and wait until the asset quality improves. However, the experts suggest the probability of earning gain in long term.

The investors with 2-3 years can hold the stock in the bank as the valuations are reasonable.

The aim of the bank involved to fulfill the guidelines of the central bank.

Suryoday Small Finance Bank lists under the top small finance banks existing in the country. The bank started commenced in 2008. Though, the offerings started in 2017. Before performing as a small finance bank, it acted as NBFC.

The managing director and CEO of the bank is Baskar Babu Ramachandran.

The objective of the fresh issue comprises fulfilling the capital requirements.

The IPO opened on Mar 17, 2021, and closed on Mar 19, 2021. The minimum quantity of the order is 49 shares.

The price per share was ₹303 to ₹305.


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