Suryoday Small Finance Bank raises Rs 158 crore

MUMBAI, Mar 2:  Suryoday Small Finance Bank today said it has raised Rs 158 crore, taking its net-worth to Rs 512 crore.

The bank completed Rs 100 crore of rights issuance and subsequently raised Rs 58 crore through private placement last month, it said in a statement here today.

“The capital raised would be used to make investments in technology and expand the distribution network having commenced operation as a small finance bank in January this year,” the bank said.

A new investor TVS Shriram Growth Fund has invested nearly Rs 41 crore as part of the issuances with a post issue shareholding of 4.5 per cent.

Other existing investors who participated in the issue included HDFC Holdings, HDFC Life, ASK Pravi Group, IFC (World Bank Group), Developing World Markets, Gaja Capital and Evolvence India Fund II and HNIs.

The foreign shareholding post the issuance stands reduced to 46.3 per cent as compared to the 49 per cent FDI permissible under extant regulations for small finance banks.

The bank currently has four branches and plans to add another five this month. It will also initiate the process of converting its existing microfinance offices into bank branches. (AGENCIES)