On the Last day of bidding March 19, the bank received a 2.37 Times subscription. NII subscribed 1.31x and retail investors subscribed 3.09x.
The public offer opens between March 17, 2021, and March 19, 2021. For the offer, the price band is low of Rs 303 and high is of Rs 305 per share. The bank planned to offer the equity shares to fulfill the future capital requirement.
Suryoday Small Finance comes under small finance bank which started its operation in January 2017.
According to the report the bank performs well and is efficient in the urban and semi-urban areas. In rural areas, it is difficult for the bank to expand its income earning capacity and growth. Hence, was not efficient comparatively in the rural region.
Their strategy involves a focus on the expansion of its geographical presence. Adapt technology and data analytics for efficient functioning. A gradual rise in retail deposits base and CASA products.
These factors show the prospects of the bank. Consequently, led to attracting investors to enter into the bidding process and buy the equity shares.
The bank comes under the list of leading small finance banks of India. Its return on asset, growth, lowest cost to income ratio indicates the better performance of the bank.
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