Utkarsh Small Finance Bank IPO
is opening for public subscription from July 12 to July 14.
Utkarsh Small Finance Bank
has announced the price band for its initial public offering (IPO) at Rs 23-25 per share.
The bidding for anchor investors began on July 11. Utkarsh Small Finance Bank on Tuesday said it has mobilised Rs 223 crore from anchor investors.
The IPO consists entirely of fresh equity shares, and the proceeds will be utilized to strengthen the bank’s tier 1 capital base to meet future capital requirements. Interested investors can bid for a minimum of 600 equity shares, with subsequent bids in multiples of 600 equity shares.
Established in 2017, Utkarsh offers a range of deposit products, including savings accounts, salary accounts, current accounts, recurring and fixed deposits, as well as locker facilities. As of March 2023, the bank operates in 26 states and Union Territories, with 830 banking outlets serving approximately 3.6 million customers, predominantly located in rural and semi-urban areas, particularly in Bihar and Uttar Pradesh.
Utkarsh’s gross loan portfolio has grown from Rs 8,415.66 crore as of March 31, 2021, to Rs 13,957.11 crore as of March 31, 2023. Similarly, disbursements increased from Rs 5,914.01 crore in fiscal year 2021 to Rs 12,442.89 crore in fiscal year 2023, while deposits rose from Rs 7,507.57 crore to Rs 13,710.14 crore during the same period.
Following a successful IPO, Utkarsh will join the ranks of other small finance banks such as AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, and Suryoday Small Finance Bank that are listed on the stock exchanges.
ICICI Securities and Kotak Mahindra Capital Company have been appointed as the book-running lead managers for the IPO.
What brokerages say about Utkarsh Small Finance Bank IPO:
ICICI Direct: ICICI Direct has given a “subscribe” rating to the IPO, with a price target of Rs 26 per share. The brokerage firm said that Utkarsh Small Finance Bank has a strong track record of growth and profitability, and it is well-positioned to benefit from the growth in the microfinance sector.
Angel One: Angel One has given a “buy” rating to the IPO, with a price target of Rs 28 per share. The brokerage firm said that Utkarsh Small Finance Bank has a strong financial performance, and it is well-managed with a good track record.
Sharekhan: Sharekhan has given a “subscribe” rating to the IPO, with a price target of Rs 27 per share. The brokerage firm said that Utkarsh Small Finance Bank is one of the leading small finance banks in India, and it has a good growth potential.
(With inputs from agencies)