UTKARSH SMALL FINANCE BANK IPO SUBSCRIBED 16.20 TIMES

Published on Jul 13, 2023 17:20

The initial public offer (IPO) of Utkarsh Small Finance Bank received bids for 1,95,26,93,400 shares as against 12,05,43,477 shares on offer, according to stock exchange data at 17:00 IST on Thursday (13 July 2023). The issue was subscribed 16.20 times.

The issue opened for bidding on Wednesday (12 July 2023) and it will close on Friday (14 July 2023). The price band of the IPO is fixed at Rs 23-25 per share. An investor can bid for a minimum of 600 equity shares and in multiples thereof.

The IPO comprises entirely of fresh issue of equity shares worth up to Rs 500 crore.

The bank proposes to utilize the net proceeds from the offer towards augmenting Bank`s Tier I capital base to meet future capital requirements. The listing of the bank is also in line with terms of the RBI in-principle approval, RBI final approval and SFB licensing guidelines, requiring the bank to list its equity shares on the stock exchanges within three years from the date of commencement of business.

Ahead of the IPO, Utkarsh Small Finance Bank on Tuesday, 11 July 2023 raised Rs 222.75 crore from anchor investors. The board allotted 8.91 crore shares at Rs 25 each to 20 anchor investors.

Utkarsh Small Finance Bank is a leading and third fastest growing Small Finance Bank (SFB) in India. The microfinance remains a focused business segment for the bank, while it has been diversifying its product portfolio to include non-micro banking loans reducing dependence on microfinance business and growing secured loan portfolio.

The bank`s operations are spread across India and its present in 26 States and Union Territories with 830 banking outlets and 15,424 employees as on March 2023 while the customer base stood at 3.59 million (both deposit and credit).

The bank reported a net profit of Rs 404.50 crore and net total income of Rs 1,828.34 crore for the twelve months ended on 31 March 2023.