Last updated: July 21, 2023, 10:36 AM IST
Listing of the Utkarsh Small Finance Bank
After an overwhelming response to the IPO, shares of Utkarsh Small Finance Bank traded at a robust premium of 60%
Utkarsh Small Finance Bank Lists on NSE, BSE: Following an overwhelming response to the IPO, shares of Utkarsh Small Finance Bank traded at a hefty 60 percent premium over the issue price. The stock was listed at Rs 40 on NSE while it debuted at Rs 39.95 on BSE as opposed to its IPO price of Rs 25.
The small financial bank’s IPO registered the second highest number of subscriptions after Ideaforge Technology in the current calendar year, with 101.91 subscriptions between July 12 and 14.
Qualified institutional buyers led the way buying shares at 124.85 times the allotted quota, followed by high net worth individuals and private investors who bid 81.64 times and 72.11 times the portion reserved for them. Employees were also aggressive in bidding, some of which were booked 16.58 times.
What should investors do now?
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., said: “The IPO of Utkarsh Small Finance Bank made a strong debut to the exchanges today, trading at ₹40 per share, a 60% premium over the top end of the price range of ₹25. The strong listing was in line with expectations. The company has a strong track record of growth and its financial performance has improved in recent years. Utkarsh SFB is well positioned to benefit from the growth of the SFB sector as it has a strong focus on underserved populations. After listing at such a level, we will propose to book these gains; however, aggressive investors may choose to buy during a subsequent dip.”
