Suryoday Small Finance Bank, a scheduled commercial bank, is planning to raise funds through an initial public offering (IPO) by mid-2020.
The bank expects to raise about Rs 400 crore to Rs 500 crore, which would be a combination of both offer-for-sale and fresh capital as well.
We have completed two years of operations as a small finance bank and we plan to continue building a healthy book and generate wealth for our customers. We will be expanding our bank branches across states. In order to pursue our business plans, we will be raising funds through an IPO, which is expected to happen anywhere between June and December 2020, Baskar Babu, MD & CEO, said after launching its operations in Hyderabad.
The bank, which was the first from Maharashtra to obtain an SFB licence from the RBI, has recently raised Rs 248 crore in equity funding through private placement to fund its expansion. The funding saw participation by three promoters, two new investors and 13 existing investors. DEG (a development finance institution and a subsidiary of German KfW Group) and Kotak Mahindra Life Insurance are the new investors.
The company is backed by marquee investors such as IFC, IDFC Bank, TVS Capital, Shriram Growth Fund, HDFC Holdings, HDFC Life, ASK Pravi Group, Developing World Markets, Gaja Capital, and EvolvenceIndia Fund II.