Utkarsh Small Finance Bank IPO: The Utkarsh Small Finance Bank (SFB) public offer received bids for 57.07 crore shares against an issue size of 12 crore units, subscribing 4.73 times on the first day of bidding today, exchange data showed. The IPO will close on July 14.
Utkarsh Small Finance Bank IPO: Subscription Status
Retail investors have bought 13.75 times their allotted quota and employees have subscribed 2.73 times. As many as 21 lakh shares have been reserved for employees of which 50 lakh shares have been booked, Bombay Stock Exchange (BSE) data showed.
The part set aside for qualified institutional buyers was subscribed 4 percent. The non-institutional portion of the IPO has been subscribed 8.25 times, with bids received for 29.6 crore shares, against the reserved portion of 3.2 crore shares.
Utkarsh Small Finance Bank IPO Dates
The public issue will open on July 12 and bidding will close on July 14. The anchor book, the part of qualified institutional buyers, was opened on July 11.
Utkarsh Small Finance Bank IPO Price Band
The small finance bank has set the price band for its 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 that comprises only fresh issue portion.
Utkarsh Small Finance Bank IPO Objectives of Issue
Utkarsh Small Finance Bank will utilise net issue proceeds for augmenting its Tier – 1 capital base to meet its future capital requirements, besides issue expenses.
Utkarsh Small Finance Bank IPO Lot Size
Investors can bid for a minimum of 600 equity shares and in multiples of 600 shares thereafter. Hence, the minimum investment by retail 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.
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 above Rs 6,000 crore, as per CRISIL report.
In October 2015, Utkarsh CoreInvest received the RBI in-principle approval to set up a small finance bank and after the same later incorporated Utkarsh Small Finance Bank as a wholly owned subsidiary in April 2016. After the obtaining RBI licence in November 2016, Utkarsh CoreInvest transferred its microfinance business to Utkarsh Small Finance Bank.
The small finance bank commenced its operations in January 2017, with operations across 26 states and Union territories through 830 banking outlets and 15,424 employees, as of March 2023.
Utkarsh Small Finance Bank IPO Listing and Allotment Dates
The finalisation of basis of allotment of IPO shares is going to take place by July 19 and the successful investors will get shares in their demat accounts by July 21. 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 the BSE and NSE on July 24 as per the IPO schedule in draft prospectus.
ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue, while KFin Technologies is the registrar to the offer.
Utkarsh Small Finance Bank IPO GMP
The Utkarsh Small Finance Bank IPO GMP aka Grey Market Premium is Rs 15.
Utkarsh Small Finance Bank IPO Should you Invest?
Nirmal Bang in its IPO note has said that Utkarsh has managed to reduce its exposure to the unsecured micro banking segment from 82 percent in FY21 to 66 percent in FY23 which has derisked its business model. “We expect this trend to continue,” the broking firm said.
BP Wealth in its report on the bank said Utkarsh has strong asset quality and consistent financial performance. The firm recommends ‘subscribe’ on the back of a robust growth story.
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