Mumbai-based Suryoday Small Finance Bank has raised Rs 170 crore from 13 anchor investors at Rs 305 per equity share. This is the upper price band of the bank’s initial public offering (IPO).

The anchor investors include Axis Mutual Fund Trustee, ICICI Prudential Life Insurance Company and Goldman Sachs.

Ahead of the IPO hitting the market on 17 March, the allocation covered 29% of the size of the issue and 68.4% of the total fresh issue. The bank has fixed the IPO price band at Rs 303-305 per share.

The IPO Committee of the bank's board has finalised the allocation Tuesday in consultation with book running lead managers Axis Capital, lClCl Securities, llFL Securities and SBl Capital Markets, the bank said in a regulatory filing.

Axis Mutual Fund and ICICI Prudential Life have invested Rs 22.5 crore each, amounting together to 26.5% of the anchor allocation. Investing Rs 32.5 crore, two Aditya Birla group companies have picked up 19.13% of the allocation.

SBI Life Insurance Company has invested Rs 17.5 crore while Goldman Sachs has put in Rs 5 crore. IDFC Mutual Fund also invested through two of its schemes.

Earlier, the small bank had raised Rs 152 crore in pre-IPO placement.

As on 31 December, the bank's reported gross non-performing asset (NPA) was 0.78% on its Rs 3,900 crore loan book. Microfinance contributes about 70% of its loan assets.

International Finance Corporation-backed Suryoday Small Finance Bank enjoys a net interest margin close to 12%. The three states of Maharashtra, Tamil Nadu and Odisha account for 77% of the bank’s entire lending portfolio.

On the lending side, Suryoday focuses on MFI loans, Vikas loans, shopkeeper loans and other credit products. The collateral for the bank's secured business loans is primarily mortgage of customer's residential or commercial property.