Suryoday Small Finance Bank’s shares close 9% lower than issue price on debut

Suryoday Small Finance Bank's shares close 9% lower than issue price on debut

Kolkata: Suryoday Small Finance Bank’s shares closed its first day of trading at Rs 277.80, about 9% lower than issue price of Rs 305. The shares were listed at 4.3% discount at Rs 292 on the bourses

The Sensex closed 568 points or 1.2% higher to 49009 Friday.

The lender became the fourth small finance bank (SFB) to be listed after

, Equitas Small Finance Bank and .

“If we talk about SFBs, the year has been tough for them because of the pandemic,” CapitalVia Global Research Limited said in a note.

“The performance of IPO on the listing day can also be attributed to the recent selling pressure in the financial services sector. Investors with long-term outlook in the company can continue to hold on to their shares as the company seems to be appropriately placed among its peers,” it said.

Suryoday’s Rs 582 crore initial public offer (IPO) was oversubscribed 2.37 times after tepid initial response.

The IPO included a primary issue of shares worth Rs 249 crore and an offer for sale worth Rs 333 crore. Some existing investors such as International Finance Corporation and HDFC Holdings are looking to partly offload their stakes through this exercise.

The bank had also raised Rs 172 crore in a pre-IPO placement to

and mutual funds of Axis Asset Management Company.

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