What was the reason for the sharp rally in the stock of Suryoday Small Finance Bank on Monday?

Suryoday Small Finance Bank, which was listed post its recent IPO, got locked in 20% upper circuit on Monday. This was following reports that Clix Capital was in merger talks with Suryoday SFB. Now Clix Capital is an NBFC floated by former GE Capital head honcho, Pramod Bhasin. Suryoday surprisingly saw a five-fold growth in trading volumes.

The entire deal between Clix and Suryoday was syndicated by Centrum Capital, which now is partly owned by former Standard Chartered India head. It may be recollected that the Suryoday IPO had a disappointing listing and at one point was trading nearly 50% below its IPO issue price. This news will broaden its bandwidth and that is positive.