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# Suryoday Small Finance Bank jumps 17% amidst merger buzz

Sep 15, 2021

 Shares of Suryoday Small Finance Bank rallied as much as 17 per cent on Tuesday amidst buzz over its merger with Clix Capital.

Clix Capital, a non-banking finance company, is in discussion with Suryoday Small Finance Bank (SSFB) for a merger, people familiar with the talks said.

Clix had attempted to take over Lakshmi Vilas Bank in the previous year, but could not succeed. The financial services firm has been on the lookout for a perfect fit to tide over the funding handicaps of an NBFC.

Following the update, shares of Suryoday Small Finance Bank zoomed 17 percent to Rs 209.40, to trade at Rs 204.70 at 10.30 am. BSE Sensex was trading at 58,405.05, 227.29 points, or 0.39 percent, higher at the same time.

Suryoday SFB is exploring both organic and inorganic opportunities to grow and bring down its exposure to unsecured loans. A merger with an NBFC or a bank would help in product diversification on the assets side, a person familiar with the matter said.

The recently-listed private lender has delivered 40 percent return in just two sessions, as it hit its upper circuit of 20 percent on Monday. However, the lender is still trading 33 percent below its issue price of Rs 305. 


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https://economictimes.indiatimes.com/markets/stocks/news/suryoday-small-finance-bank-jumps-17-amidst-the-merger-buzz/articleshow/86191540.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst