IPO Utkarsh Small Finance Bank: The initial public offering (IPO) of Utkarsh Small Finance Bank (SFB) opens for subscription on Wednesday, July 12. The private lender is selling its shares in the range of Rs 23-25 each during the three-day bidding process, which ends on Friday, July 14.
A day before the IPO, Utkarsh SFB allotted 8.91 crore shares to 20 anchor investors at an issue price of Rs 25 each to amass Rs 222.75 crore. SBI Mutual Fund, ICICI Prudential, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Goldman Sachs, SBI Life Insurance, Edelweiss Trusteeship, Founders Collective Fund and AG Dynamics Funds participated in the anchor book.
Utkarsh Small Finance Bank IPO Dates
The public offering opens on July 12 and the bidding closes on July 14. The anchor book, the portion of qualified institutional buyers, opened on July 11.
Price Range Utkarsh Small Finance Bank IPO
The small financial bank has set the price range for the issue at Rs 23-25 per share.
Utkarsh Small Finance Bank IPO Issue Size
The bank plans to raise Rs 500 crore from its offering which only includes a new issuance portion.
Utkarsh Small Finance Bank IPO Objectives of Issuance
Utkarsh Small Finance Bank will use the net issue proceeds to increase its Tier – 1 capital base to meet its future capital requirements in addition to the issue cost.
Utkarsh Small Finance Bank IPO lot size
Investors can bid on a minimum of 600 shares and then in multiples of 600 shares. Therefore, the minimum investment by private investors in the public issue would be Rs 15,000 for one lot and the maximum investment would be Rs 1.95 lakh for 13 lots.
Up to 75 percent of the issue is reserved for qualified institutional buyers, 15 percent for high net worth individuals and the rest 10 percent for retail investors.
Utkarsh Small Finance Bank IPO About Bank
Utkarsh Small Finance Bank recorded the third fastest gross loan portfolio growth between FY19 and FY23 among SFBs at over Rs 6,000 crore, according to the CRISIL report.
In October 2015, Utkarsh CoreInvest received approval in principle from the RBI to establish a small finance bank and then incorporated Utkarsh Small Finance Bank as a wholly owned subsidiary in April 2016. After obtaining the RBI license in November 2016, Utkarsh CoreInvest transferred its microfinance business to Utkarsh Small Finance Bank.
The small financial bank began operations in January 2017, with operations in 26 states and Union territories through 830 bank branches and 15,424 employees, as of March 2023.
Utkarsh Small Finance Bank IPO Listing and Allotment Dates
The finalization of the allotment basis of IPO shares will take place by July 19th and the successful investors will receive shares in their demat accounts by July 21st. The refunds will be credited to bank accounts of unsuccessful investors by July 20.
Utkarsh Small Finance Bank, which will make its grand debut on July 24 on the BSE and NSE as per the IPO schedule in the draft prospectus.
ICICI Securities and Kotak Mahindra Capital Company are the lead managers of the offering, while KFin Technologies is the registrar of the offering.
Utkarsh Small Finance Bank IPO GMP
The Utkarsh Small Finance Bank IPO GMP aka Gray Market Premium is Rs 15.
Utkarsh Small Finance Bank IPO Should You Invest?
Utkarsh SFB continuously strives to improve its business with deeper insights into customer trends and to develop customized products for its customer segments. It plans to drive growth through diversification of product offerings, customer segments and geography supported by technology, process and data analytics, Reliance Industries said.
“With a downward trend in the improvement of NIMs and NPAs over the past three years, earnings growth remains strong. In the FY23 financials, the IPO is valued at 6.8 times P/E and 1.1 times P/A.
The future prospects of the SFB depend on the monetary policy of RBI and the Government of India. The bank’s ability to offer their products and services in a cost-efficient manner is among their strengths and their cost-to-income ratio was the lowest among SFBs with a gross loan portfolio of over Rs 60 billion, said Anand Rathi.
“In the higher price range, the company is valued at P/B of 1.39 times with a market cap of Rs 2,740 crore after share issue and a return on equity of 20.22 per cent. We believe the company is reasonably priced and recommend a “subscribe-long term” rating at IPO,” it added.
