Suryoday Small Finance Bank raises around Rs 160 crores

MUMBAI: Suryoday Small Finance Bank has successfully raised Rs 158 crores through series of capital raise during February 2017. The bank completed Rs 100 crores of rights issuance and subsequently, raised Rs 58 crores through private placement. With this, the revised net-worth of the Company stands at Rs 512 crores.

TVS Shriram Growth Fund, a new investor has invested approximately Rs 41 crores as part of the issuances with a post issue shareholding of 4.5%. Other existing investors who participated in the issue included HDFC Holdings, HDFC Life, ASK Pravi Group, IFC ( World Bank Group), Developing World Markets, responsibility, Gaja Capital and Evolvence India Fund II, Family Offices and HNIs. The foreign shareholding post the issuance stands reduced to 46.3% as compared to the 49% FDI permissible under extant regulations for small finance banks.

The capital raised would be used to make investments in technology and expand the distribution network having commenced operation as a small finance bank on January 23, 2017. The Small Finance Bank currently has 4 bank branches and plans to add another five bank branches in March 2017 and initiate the process of converting its existing microfinance offices into bank branches.