The SFB, Suryoday Small Finance Bank is planning to raise Rs 150-250 crore in the coming months from its existing shareholders through a rights issue. This will enable them to explore one more round of fund raising by way of issuing Rights Issue to their existing shareholders. Possibly the bank would explore possibilities of raising another fund raising, through rights issue. The quantum is yet to be finalized which could be between 150 to 250 crores. The bank had raised 158 crore through a rights issue and private placement of shares in February this year. The current net worth of the bank after increasing the capital stands at Rs. 512 crore and the capital adequacy stands at 45 per cent.
Following are the current shareholders of the Bank.
- TVS Shiram Growth Fund,
- HDFC Holdings,
- HDFC Life,
- IDFC Bank,
- ASK Pravi Group,
- International Finance Corporation
- Developing World Markets,
- Gaja Capital and
- Evolvence Indis Fund II
Also. family offices and high net worth individuals are keen in investing further. RBI guidelines read that SFBs should maintain a promoter holding of at least 26 per cent.
- The bank has a 51 per cent domestic ownership, which includes 26 per cent of the promoter group.
- The remaining 49 per cent is held by foreign entities.
- After raising the funds, the bank expects to advance its listing from the previously planned 2020.
- According to RBI regulations, small finance banks require a net worth of Rs 500 crore before they hit the market.
- The fresh capital raised would be used to increase the infrastrucrture in the area of technology and to expand the distribution network of the bank.
- Suryoday, which offers the highest returns on fixed and savings bank deposits, has garnered more than Rs 400 crore in deposits.
- The small finance bank currently has 25 branches and has started the process of converting its existing microfinance offices into bank branches.
- The bank also proposes to convert 226 door step service centres to banking outlets.
- It will also convert 226 door step service centres to banking outlets.