Intraday trading is about speed, timing, and precision. Unlike long-term investing, it involves buying and selling stocks within the same trading day to profit from short-term price movements.
In today’s fast-paced market, having the right intraday trading app can make all the difference. The ideal app should provide real-time market data, fast order execution, and advanced technical analysis tools. With mobile trading on the rise in India, both beginners and seasoned traders can access the markets anytime, anywhere.
In intraday trading, all trades are squared off before the market closes. This approach offers several advantages:For example, you could buy 500 shares of a stock at ₹250 in the morning and sell them at ₹255 before market close, earning a profit from the price difference.
For example, you could buy 500 shares of a stock at ₹250 in the morning and sell them at ₹255 before market close, earning a profit from the price difference.
A well-designed trading app offers:
Aarav, a 28-year-old engineer, wanted to explore intraday trading. Using Swastika Investmart, he:
An intraday trading app is your gateway to participating in the fast-paced stock market. With the right app, you can trade efficiently, manage risks, and make informed decisions.
For traders who want not only speed but also expert insights and personal support, Swastika Investmart offers an excellent balance of technology and human guidance.
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Q1. What is the minimum amount needed for intraday trading?
It varies by broker, but you should always start with risk capital you can afford to lose.
Q2. Can I use one account for both intraday and delivery trading?
Yes, the same account can be used for both.
Q3. Is intraday trading risky?
Yes, it involves high volatility and requires discipline.
Q4. Which app is best for intraday trading in India?
Swastika Investmart is a great choice for traders who want both research and fast execution.
Q5. Can beginners do intraday trading?
Yes, but they should start small, learn strategies, and use stop-loss orders.
Creating a trading strategy that outperforms the market can seem like a difficult task, but with the right approach, it’s definitely achievable. Here’s a simple guide to help you develop a strategy that could give you an edge.
Before you start, think about what you want to achieve. Are you looking for short-term gains or long-term growth? Knowing your goals will help you shape your strategy to match.
Figure out how much risk you’re willing to take. Are you comfortable with high-risk, high-reward trades, or do you prefer a safer approach with steadier returns? Your risk tolerance will guide your investment choices and strategy.
Research is key. Study different markets and assets to understand how they behave. Look into historical data and trends to see what has worked in the past. This knowledge will help you make more informed decisions.
There are various trading styles to choose from:
Develop a detailed trading plan that includes:
Technical analysis involves studying price charts and patterns to predict future movements. Learn how to read charts, identify trends, and use indicators to make better trading decisions.
While technical analysis is important, don’t ignore the fundamentals. Pay attention to news and events that might impact the market, such as economic reports or company earnings.
Before you commit real money, test your strategy with a paper trading account or a small investment. This helps you see how your strategy performs without risking too much.
Once you start trading, keep track of your performance. Analyse what’s working and what isn’t. Be ready to adjust your strategy based on your results and changing market conditions.
Stick to your plan and avoid making impulsive decisions based on emotions. Discipline is crucial for long-term success.
Developing a trading strategy that beats the market takes time, effort, and patience. By setting clear goals, understanding your risk tolerance, doing thorough research, and staying disciplined, you can create a strategy that helps you achieve your financial objectives. Keep learning and adapting, and you’ll be on your way to becoming a successful trader.
A stock broker acts as an intermediary, facilitating the buying and selling of stocks and securities in a stock exchange on behalf of financial institutions and firms. Investors cannot directly trade in stock exchanges; hence, the role of a stock broker is crucial.
To successfully carry the transaction of stocks trading, you are required with an intermediary who helps you in purchasing and selling the stocks in a much better way. This intermediary can be a person or a company that is authorized to do the transaction of stocks on your behalf. Such a company or person is known as a stock broker in India.
A stock broker in India can be either a stockbroking firm or an independent entity, providing stockbroking services to customers. The primary role of a stock broker is to execute buy and sell orders for clients, and to offer insights that help investors make insightful decisions.
Before we step into the importance of stock broker, let’s figure out how to choose the best online stock broker:
How to Choose the Best Online Stock Broker?
Selecting the right online stock broker is crucial for successful investing. A good stock broker not only helps you identify potential stocks but also guides you in choosing the best ones for generating returns.
If you are a newbie who wants to invest in stock market trading, it is suggested to pick the best online stock broker, as with the help of it, you can handle all the stock market operations at a fingertips.
Here are some tips to select the best online stock broker:
1. Understand Your Basics
Know your investment needs. Opt for a stock broker who understands your expectations from stock trading. Many online stock brokers charge high brokerage fees, which may not suit new investors. Look for brokers like Swastika Investmart that offer excellent trading services at affordable rates.
2. Stock Market Pricing
It is important to check the pricing of a stock broker before deciding to move further. Try to find out the AMC annual maintenance charges. These charges vary from broker to broker. Some brokers charge very high amounts, while others, like Swastika Investmart, offer competitive and transparent pricing.
3. Range of Trading Segments
Different investors have different priorities in trading financial products such as Equity, commodities, IPOs, FDs and more. Go for the stock broker who has different financial products.
4. Fund Transfer Process
Select a stock broker which comes with 3 in 1 Demat account as the stock broker provides seamless fund transfer services which allow investors to trade with ease. This feature, offered by Swastika Investmart, allows you to trade with ease without constantly transferring money.
5. Expertise of Research Team
While selecting a stock broker, it would be ideal to check the research team provided by the stock broker first. This is because the research reports generated by the stock broker help investors in picking the best stocks that would give them high returns.
In share trading, margin trading refers to the process where individual investors buy more stocks than they can afford. Also known as intraday trading, margin trading allows all the transaction of stocks (buying and selling) in a single day.
Now Intraday’s stock brokers are well capitalized. Here, stock broker lends capital to the traders who want to leverage their positions. A margin amount is to be paid by traders after which they are allowed to take positions in the stock market. Generally, the margin amount is 50%.
Mostly, a broker deals in all types of securities. The stock brokers suggests the best deals to its clients such as when to buy or sell a stock. Majorly suggest the stocks on the basis of advisory, and research reports suggested by them.
A stock broker receives orders from multiple traders and places those orders on a stock exchange. Once the order is successfully placed, trades will get to know about it. However, this is the case with full-service stock broker of India, online brokers facilitate trades with trading platforms where traders can place their orders on their own.
All the orders are automatically visible in your Demat account once they are successfully placed and executed.
Full-service stock brokers charge commissions in the form of brokerage for the services they provide to traders. This charge is some percentage of the trader they provide to clients. Discount brokers charge a flat commission which is pre-decided on every executed order.
Now, many of you have acknowledged the fact that how share trading can play a valuable role in your life. Yes, you heard it right. Investing in online share trading gives you bundles of opportunities to invest in different types of stocks.
Once you gain appropriate knowledge about stock trading, you can easily perform transactions with such ease and book a significant amount of profit. In case you need any help, you can easily connect with an online stock broker, during the initial days. Once you become a thorough expert in buying and selling shares then you can try to do it on your own.
Things you need to know:
PAN Card
For the Demat account opening process, you must require the important document as proof i.e PAN Card. It is a valid ID proof that is issued by the government of India.
Depository Participants
NSDL (National Securities Depository Limited) and CSDL (Central Security Depositories Limited) are the primary depository participants of India that help you to store the shares you hold. They provide you with a unique account pertaining to the same.
Many people often get confused with the term Demat and Trading account. Demat Account shows the number of shares you hold. Trading account, on the other hand, allows you to buy and sell shares that you currently have.
Picking the right Stock Broker
If you are a beginner then it is suggested to consult a full-service trusted broker. This is because the full-service broker gives you guidance on the day to day aspects of share trading. These stock brokers are SEBI (Security and Exchange Board of India) certified and given licence to act as a broker. In other words, a broker is an intermediary between an independent stock broking firm and share trader.
Ways to Perform Buying and Selling of Shares
This is how you perform in buying and selling shares. For instance, you have bought shares of Rs 890 with the assistance of a broker, the broker will ensure you regarding the purchase order or stop order. Also, they help you to execute the stop order if you want to stop the transactions during the day.
How are the Stock Brokers in India regulated?
Stock brokers in India are regulated under the Securities and Exchange Board of India Act 1992, Securities Contract Regulations Act, 1956, and also the Securities and Exchange Board of India (Stockbrokers and sub-brokers Regulations), 1992.
In addition to this, stock brokers are also regulated under other regulations and bylaws that SEBI may issue from time to time.
Important Note:
Every stockbroker in India needs to be a member of stock exchanges and also requires to be registered with SEBI. Stockbrokers display their registration details on their websites and even on official documents. To get any inquiry about registration, one can also visit the SEBI website and find details of registered stockbrokers.
Now you all know about stock brokers and how they are regulated, let's take a quick tour of the types of stock brokers.
Based on the types of service provided, there are majorly two types of stockbrokers - full-service stock brokers and a discount stock broker.
Comprehensive Services: Offer full trading services and a wide range of add-ons to clients.
Advisory Services: Provide advisory services to help clients make good investment decisions.
Research Reports: Supply detailed research reports on various stocks and market trends.
Relationship Managers: Assign relationship managers to assist with client needs.
Variety of Services: Offer additional services such as IPOs, mutual funds, insurance, loans, etc.
Established Players: Often have a strong presence with branches across the country.
Client Convenience: Easier for clients to access services and get advice due to widespread branches.
Limited Services: Do not provide advisory services or research facilities.
Online Platform: Emerged due to the ease and accessibility of the internet.
Trading Platform: Offer an online trading platform for clients to execute trades.
Flat Brokerage Fees: Charge flat brokerage fees, typically a set fee per transaction.
Cost-Effective: Generally more cost-effective for clients who do not require additional services.
Online stockbroking services are faster than traditional ones because transactions can be done over the internet. They also allow stockbrokers to connect with clients via email and chat, providing real-time updates.
In addition to stockbrokers, it's useful to understand sub-brokers. A sub-broker works on behalf of a stockbroker to help investors trade financial securities. Unlike stockbrokers, sub-brokers are not directly members of the stock exchange and need to register with SEBI to trade.
Rights and Responsibilities of Stock Brokers, Clients, and Authorised Persons
All parties involved in trading services—whether clients, authorised persons, or stock brokers—are governed by SEBI regulations, which ensure clarity and transparency in all transactions and liabilities related to share trading.
Here is a summary of the rights and responsibilities for the top stock brokers in India:
Integrity:
A stock broker must uphold the highest standards of integrity, fairness, and promptness in all business activities.
Exercise of Due Skill and Care:
A stock broker is required to exercise care, diligence, and due skill in every aspect of their business operations.
Manipulation:
A stock broker must refrain from engaging in deceptive schemes, fraudulent transactions, or spreading rumours that could distort market equilibrium or lead to personal gains.
Malpractices:
A stock broker should not create or participate in the creation of a false market, whether individually or in collaboration with others. Additionally, they must avoid any actions that could harm investors' interests or disrupt the fair and smooth functioning of the market. Excessive speculative trading beyond reasonable business limits, especially if not aligned with the broker's financial stability, is strictly prohibited.
Compliance with Statutory Requirements:
A stock broker must adhere to all relevant provisions of the law, including rules and regulations issued by the government, the Securities and Exchange Board of India (SEBI), and the stock exchange as applicable.
Education:
While there are no specific educational prerequisites for becoming a stock broker, certain courses can provide valuable insights and advantages in the field. The minimum qualification is a bachelor's degree, coupled with at least two years of experience in a stock broking firm. Many stock brokers further enhance their expertise with a Master of Business Administration (MBA) in finance, which equips them with knowledge in mathematics, statistics, qualitative analysis, and more.
Experience:
Gaining experience in a stock broking firm is crucial for aspiring stock brokers. This hands-on experience provides a deep understanding of stock market regulations, financial markets, and accounting practices.
The Indian capital market is recognized as one of the most organised and regulated sectors, largely due to the efforts of SEBI. Whether you are an investor or a stock broker, it is essential to operate within the guidelines set by SEBI to avoid potential challenges.
Market Watchdog SEBI has brought a new policy to the initial public offering (IPO) process easier and faster in connection with the IPO. Another master move by SEBI is to simplify the entire procedures with a focus on reducing the listing time from 6 days to 4 days.
Also, SEBI considers IPO investor grievances for those who use a unified payment interface (UPI) for payment. The market regulator has further said that it has allowed the Payment UPI for investors who wish to invest in IPOs. According to SBI norms, only the UPI handles it has mandated can be used for issuing IPO mandates.
The SEBI has already minimized the listing time from seven days to six days post-closing of the bidding. This blocks the fund of an investor if he could not get the entire subscription.
Earlier, the regulator had ended the practice of allowing the issuer to block the entire subscription amount in the Demat account by allowing the money to be blocked in the investor’s account through the Absa facility. This helped investors not to block their money in a third party account till the IPO process is over.
SEBI chairman Ajay Tyagi further said SEBI is trying to simplify the process of IPO by reducing the time taken for listing a company on the stock exchange after the IPO to four days from six days.
This year, the IPO market or share market is giving satisfying results as the fund raising through the primary issues is more than six years combined. According to Ajay Tyagi, the formalization of the economy after the demonetization, softer interest rate regime, as well as increasing public awareness about mutual funds, has uplifted the demand side, while outstanding issues have helped the supply side.
In order to maintain the stable regulations, Tyagi said, he wants to continue with the stable regulations as any sort of overburden will lead to lower investment which is not good for the primary market.
Seeking the broader investor’s participation in the MF industry, Ajay Tyagi said the AUM of the industry is still working well over at Rs 21 trillion which is one-fifth of the banking sector.
In order to grow the MF industry in a transparent manner, he said the SEBI has created a separate division that primarily focuses on mutual funds so that there is no miss-selling.
For the smooth process of IPO, SEBI will address the delays of the mandate by investors for blocking of funds because of the problems that occurred at the stock brokers’ end.
The share trading policy will also work on the issues regarding the unblocking of funds in partial allotment cases after the finalization of BOA (the basis of allotment).
The basis of allotment is a document that contains the basics on which the equity shares are allotted to the successful bidders. BOA is a document that is published by the registrar of IPO after the share finalization based on SEBI guidelines.
SEBI also set a new framework in which sponsor banks are required to send any pending application for unblocking of funds to the registrar along with the allotment file not later than 12.30 pm on BOA+1.
Next, the registrar would submit bank-wise pending UPI applications to SCSBs with the allotment file for unblocking before 2 pm on BOA+1. This will be followed by the confirmation submitted by SCSBs to lead managers on BOA+1. If SCB fails to provide any details on the time, then SEBI will take strict action for this.
These changes will come into effect from May 1, 2021. SEBI’s new framework comprises a lot of things that include that the self-certified syndicate banks SCSBs will be required to find out the nodal offer for SME IPO applications that are processed through UPI payment gateway. Also, SCSBs need to submit all the processing details to SEBI within seven working days.
According to the new framework, SEBI gives clear instructions that brokers and investment bankers need to compensate any IPO applicants by paying Rs 100 or 15 per cent interest per annum on the application amount depending on which one of the two is higher.
In addition to this, the sponsor banks will host a portal for intermediaries or stock brokers where the IPO date is listed. The portal comprises all the details of the blocking or unblocking of funds, apps, any downtime or delays, the performance of UPI handles and more. Overall, any process that is involved in the bidding process of the IPO will be documented.
The intermediaries, aka online stock broker that include in IPO are merchant bankers, underwriters, registrars are registered by SEBI. These intermediaries perform all the IPO related activities including preparation of draft offer documents, the basis of allotment, and crediting of shares to the successful applicants of IPOs.
In 2018, SEBI had introduced the use of UPI as a payment gateway for retail individual investors. This acronym ASBA refers to an investor’s application to SCSBs. The application contains an authorization to block bank account debit till it is selected for allotment after finalization on the basis of allotment. The ASBA facility was made mandatory for all investors who were applying for an IPO in 2016.
Needless to say, the use of the UPI payment method will not only uplift the process for IPOs by investors but also increase their confidence while entering the market. According to NITI aayog, the popularity of UPI has suddenly increased over time with nearly 2.3 billion transactions amounting to Rs 4.2 trillion.
Market regulator SEBI’s primary objective is to ensure that the upcoming IPO process should be smooth, efficient and fast so that the maximum investors can get the maximum benefit from the seamless process. It also assists investors to object to grievances. Also, through UPI payment method, investors can successfully carry out the IPO application process, which is a quite popular payment gateway and easily used on any electronic device like a laptop, smartphone, tablets. By doing so, SEBI makes a great effort in making the process seamless, fast and effective for all investors involved.
Incorporated in 2006, Barbeque Nation Restaurants is one of the leading casual dining restaurant chains (in terms of outlet count as of September 30, 2020) according to the Technopak Report, and International Barbeque Nation Restaurants. The company also owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant.
The first Barbeque Nation Restaurant was launched in 2006 by SHL, one of our Promoters. The company launched our first Barbeque Nation Restaurant in 2008 and subsequently acquired five Barbeque Nation Restaurants owned by SHL in 2012.
Barbeque Nation have steadily grown our owned and operated Barbeque Nation Restaurant network from a single restaurant in 2008 to 147 Barbeque Nation Restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India as of December 31, 2020.
The company owns 61.35% of the equity share capital on a fully diluted basis of one of our Subsidiaries, Red Apple, which owns and operates nine restaurants under the brand name, “Toscano”, a casual dining Italian restaurant chain and operates one restaurant each under the brand names “La Terrace” and “Collage” respectively.
The first Toscano Restaurant commenced operations in June 2008 and, as of December 31, 2020, we operated eleven Italian Restaurants, nine of which are under the brand name “Toscano”, in three cities in India. In November 2018, Barbeque Nation launched UBQ by Barbeque Nation Restaurant to provide a la carte Indian cuisine in the value segment. At present, UBQ by Barbeque Nation Restaurant predominantly caters to the delivery segment.
Barbeque Nation Restaurants, compared to other fixed-price dining options, offer competitive attractions such as a wide range of vegetarian and non-vegetarian appetizers and main courses, a popular dessert menu, a pleasant and casual dining environment, and prompt service thereby making it a popular destination for celebrations. The company also periodically run popular food festivals at our Barbeque Nation Restaurants offering our guests a range of Indian, international and fusion cuisines.
IPO Details:
IPO Date March 24th, 2021 to March 26th, 2021Issue TypeBook Built Issue IPO Issue SizeRs 452.87 Crores Fresh IssueRs 275 crore Offer for Sale98,22,947 equity shares Face ValueRs.5 per equity share IPO PriceRs.499 to Rs.500 equity share Min Order Quantity30Listing At BSE, NSE
IPO Objective:
Financial Performance:
FY2018 FY2018 FY2019 FY2020 9M FY2021 Revenue 590.4742.5850.8236.6Expenses450.1593.2682.8224.0Comprehensive income-6.5-40.7-35.6-98.6Margin (%)-1.1-5.5-4.2-41.7
Tentative Time Table:
IPO Opens on 24 March 2021
IPO Closes on 26 March 2021
Basis of Allotment Date: Apr 5, 2021
Initiation of Refunds: Apr 5, 2021
The credit of Shares to Demat Account: Apr 6, 2021
IPO Listing Date: Apr 7, 2021
Outlook :
The Barbeque Nation IPO is coming at a time when the COVID-19 pandemic has made many restaurants unviable. Food orders can meaningfully increase and the share of trusted brands is bound to go up vs random mom-pop restaurants that may not be able to assure hygiene.
The restaurant chain has seen compounded annual growth of 14.29%. It has grown from ₹68.60 Crore in FY17 to 89.60 Crore in FY19.
The company is backed by private equity investor CX Partners and ace investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital. Alchemy Capital bought about a 3.5% stake in Barbeque-Nation Hospitality for ₹90 Crore last year.
It also acquired a 61.35% stake in Red Apple Kitchen, which owns Toscano, a casual dining Italian restaurant chain that has ten outlets operating across Bengaluru and Chennai.
Earlier in December last year, Jubilant Foodworks, which operates fast-food chains Domino's Pizza and Dunkin' Donuts in India, had acquired a 10.76 percent equity stake into Barbeque-Nation Hospitality Ltd (BNHL) Rs 92 crore.
Barbeque Nation also launched UBQ through its existing kitchen infrastructure, in November 2018 to provide a la carte Indian cuisine in the value segment, which is also being availed by delivery across 71 cities in India.
The restaurant & hospitality sector, despite being amongst the worst hit due to COVID 19 has tremendous potential in a growing economy like India.
With the rise of nuclear families, changing habits, and increasing urban population with higher disposable income coupled with strong growth of food-related e-commerce platforms, a strong branded player like Barbeque Nation stands to gain in the future. IPO could attract a lot of interest among both retail & institutional investors leading to a strong listing.
सोने और चांदी की भाव निचले स्तरों से सुधार होने के बाद एक सकारात्मक सीमित दायरे में बने हुए है। डॉलर इंडेक्स दो सप्ताह के निचले स्तरों से पलट गया जिससे कीमती धातुओं के भाव अस्थिर हुए है। 10 वर्ष अमेरिकी बॉन्ड यील्ड 14 महीने की ऊंचाई 1.7 प्रतिशत के स्तरों पर पहुंच गई है। बढ़ती हुई बॉन्ड यील्ड से गैरउपज वाली धातु सोने के भाव मे बढ़त सीमित हो गई है।
डॉलर को बढ़ती बॉन्ड यील्ड का सपोर्ट है जैसा सामान्य रूप से होता है, लेकिन यह मजबूत होती अमेरिकी आर्थिक स्थिति से भी प्रभावित है। अमेरिकी मुद्रास्फीति अभी अपने लक्ष्य 2 प्रतिशत के निचे चल रही है, अगर अर्थव्यवस्था मजबूत होती है और मुद्रास्फीति नहीं बढ़ती है, तो यह सोने के लिए ख़राब संकेत है। अमेरिकी फ़ेडरल बैंक ने अपनी बैठक मे वर्त्तमान मौद्रिक निति को उचित ठहराया है।
फेड प्रमुख के भाषण के मुताबिक अमेरिकी ट्रेजरी की पैदावार तेजी से बढ़ी है क्योंकि नए वित्तीय सहायता में व्यापक टीकाकरण और 1.9 ट्रिलियन डॉलर की वित्तीय सहायता के बीच आर्थिक दृष्टिकोण में सुधार हुआ है। निवेशकों के बीच जल्द ब्याज दरे बढ़ने की अटकले रही लेकिन फेड ने यह स्पष्ट करते हुए 2023 तक ब्याज दरों मे कोई बढ़ोतरी नहीं करने के लिए कहा है।
इस सप्ताह कीमती धातुओं के भाव दबाव मे रह सकते है। सोने मे 44000 रुपये के निचले स्तरों पर सपोर्ट है तथा 45500 रुपये पर प्रतिरोध है। चाँदी में 65800 रुपये पर सपोर्ट और 69000 रुपये पर प्रतिरोध है। किसी भी, समस्या, सुझाव, सहायता अथवा सहयोग हेतु यहाँ संपर्क करें
Incorporated in 2008, Suryoday Small Finance Bank Ltd is a leading Small Finance Bank (SFB) in India. The company started offering SFB services in 2017. They serve customers in the unbanked and underbanked segments. Before SBF, the company operated as an NBFC.
Suryoday Small Finance Bank Ltd commenced microfinance operations in 2009 and has since expanded operations across 13 states and union territories, as of December 31, 2020.
As of December 31, 2020, our customer base was 1.44 million and our employee base comprised 4,770 employees and operated 554 Banking Outlets including 153 Unbanked Rural Centres (“URCs”).
The company has set up 661 customer service points (“CSPs”) as additional service or touch points during April 1, 2020, and January 31, 2021, and intend to continue to expand our reach through the CSP model.
The delivery platform also includes partnering with business correspondents (“BCs”) for sourcing both asset and liability business and have expanded our network and presence through their reach to promote financial inclusion.
The company has arrangements with various payment banks in India and has been able to leverage our relationship with such payment banks to grow our deposit base.
The distribution network comprises ATMs, phone banking, mobile banking, tablet banking, unified payment interface (UPI), CSPs, and internet banking services. The company’s operations are predominantly in urban and semi-urban locations due to greater income earning capabilities and employment opportunities in such areas compared with rural regions.
Gross Loan Portfolio has grown at a CAGR of 46.98% from ₹ 17,177.84 million as of March 31, 2018, to ₹ 37,108.42 million as of March 31, 2020, and was ₹ 39,082.29 million as of December 31, 2020.
Deposits have grown at a CAGR of 94.95% from ₹ 7,495.22 million as of March 31, 2018, to ₹ 28,487.15 million as of March 31, 2020, and was ₹ 33,438.40 million as of December 31, 2020. As of December 31, 2020, retail deposits comprised 72.40% of our total deposits.
IPO Details:
IPO Date March 17th, 2021 to March 19th, 2021Issue Type Book Built Issue IPO Issue Size19,093,070 Eq Shares of ₹10(aggregating up to ₹582.34 Cr)Fresh Issue8,150,000 Eq Shares of ₹10(aggregating up to ₹248.58 Cr)Offer for Sale10,943,070 Eq Shares of ₹10(aggregating up to ₹333.76 Cr)Face Value Rs.10 per equity share IPO Price Rs. 303 to Rs. 305 equity share Min Order Quantity49Listing At BSE, NSE
IPO Objective:
The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards:
Financial Performance:
ParticularsFor the year/period ended (₹ in Crores)31-Dec-2031-Mar-2031-Mar-1931-Mar-18Total Assets63,50.453,64.537,61.221,55.9Total Revenue6,89.8,54.15,97.03,24.9Profit After Tax54.81,11.190.311.4
Tentative Time Table:
Outlook :
Suryoday SFB is among the leading SFBs in India in terms of net interest margins, return on assets, yields, and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020. Total assets show consistent growth.
Over the years, it has recorded a CAGR of 47.98%. This can be because of the fact that the gross loan portfolio of Suryoday has shown a CAGR of 46.98% over the past two years, from FY 2018 to FY 2020. The deposits, too, have shown a CAGR of 94.95%. From Rs. 749.52 crores in FY 2018, it has grown to Rs. 2,848.71 crores in FY 2020.
In fact, as of FY 2020, 54.44% of the total deposits came from the retail category. The net profit earned shows an overall increase, but in FY 2017 and FY 2018, the figures show a dip. The CAGR, in this case, is 47.05%. Over the past six years, the company has recorded a positive net cash flow from operating activities in only two years.
The rest of the year is characterized by the increasing negative value of net operating cash flow. This market is dominated by the top three small finance banks – AU, Equitas, and Ujjivan. Together, these three banks accounted for about 63% of the total assets under management in 2020.
Overall, there is significant growth expected in the near future. The deposit base of small finance banks increased by about 48% in FY 2020. A CAGR of 22% is predicted in the loan portfolio in this market. This growth is based on the fact that the Indian economy is focusing on the growth of the banking sector and financial inclusion. There is a significant market opportunity in the rural parts of the country.
Suryoday SFB is showing decent growth in both revenue and profit front whereas there is an improvement on the margin front as well. Over the period FY18-20, Gross Loan Portfolio, and Deposits have grown at a CAGR of 46.98% and 94.95% respectively.
If we talk about valuation then at the upper band the PE ratio works out to be around 23 while the PB ratio is around 2.3 which is in line with peers. This business has good growth potential amid a strong Indian economic growth outlook but it has its own systematic risks. Though valuation is not very lucrative by looking at strong growth in financials.
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