J. Sagar Associates (“JSA”) advised IDFC FIRST Bank Limited (“IDFC”), a selling shareholder, in relation to the proposed initial public offering of Suryoday Small Finance Bank Limited (“Suryoday”). Suryoday has filed a draft red herring prospectus dated September 30, 2020, with the Securities and Exchange Board of India for an initial public offering 20,061,796 equity shares comprising of a fresh issue of equity shares by Suryoday and an offer for sale of up by various shareholders, including IDFC, to the extent of 250,000 equity shares by IDFC.
Axis Capital Limited, ICICI Securities Limited, IIFL Securities Limited and SBI Capital Markets Limited acted as the book running lead managers for the proposed initial public offering.
Suryoday is among the leading small finance banks in India in terms of net interest margins, return on assets, yields and deposit growth and had the lowest cost-to-income ratio among small finance banks in India in Fiscal 2020. Suryoday has more than a decade of serving customers in the unbanked and underbanked segments in India and promoting financial inclusion. Prior to commencement of operations as an small finance bank, Suryoday operated as an NBFC – MFI carrying out microfinance operations and operated the joint liability group-lending model for providing collateral-free, small ticket-size loans to economically active women belonging to weaker sections. Suryoday started operations as small finance bank on January 23, 2017.
JSA team comprised Partner – Arka Mookerjee and Principal Associate – Pracheta Bhattacharya.
Arka’s practice area covers primarily equity capital markets issuances which covers a wide range of products such as Initial Public Offerings, Rights Issues, Qualified Institutions Placements, Initial Public Offering of Infrastructure Trusts and foreign currency convertible bonds.