KR Choksey IPO report on Suryoday Small Finance Bank
Formerly recognized Suryoday Micro Finance Ltd (NBFC-MFI), incorporated on November 10, 2008 at Chennai, Tamil Nadu. Currently headquartered at Navi Mumbai, Maharashtra, Suryoday Small Finance Bank started its operations on January 23, 2017 after the RBI’s approval. As on Dec’20, the bank operates through its 554 banking outlets spread across India’s 13 States and Union Territories; mainly concentrated in Maharashtra, Tamil Nadu and Odisha. As on Dec’20, micro finance book stood at ~70% of Gross Loan Portfolio (GLP). Besides, it offers diverse asset products of commercial vehicle loans, affordable home loans, micro business loans, secured and unsecured business loans to MSME/SME and corporates and Financial Intermediary Groups (FIGs) loans. It operates with 4,770 and 1.44 mn of employee and customer base as on Dec’20, respectively.
Valuation and Outlook
We recommend ‘AVOID’ to the issue of Suryoday SFB; however, post listing we will monitor bank’s financial performance for the upcoming quarters.
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For all IPO stories, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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