Utkarsh Small Finance Bank IPO To Open Tomorrow, Sets Price Band At Rs 23-25 Per Share

Utkarsh Small Finance Bank IPO: The bank is looking to raise Rs 500 crore through its IPO, which is a completely fresh issue of equity shares

Utkarsh Small Finance Bank (SFB) has said that it has fixed a price band of Rs 23-25 a share for its Rs 500-crore initial public offering (IPO). the PTI reported. The Varanasi-headquartered small finance bank's IPO will open for public subscription during July 12-14. The bidding for anchor investors will open on July 11, the lender said.

According to the report, the bank is looking to raise Rs 500 crore through its IPO, which is a completely fresh issue of equity shares. According to the report, proceeds from the fresh issue will be utilised to augment the lender's Tier 1 capital base to meet future capital requirement.

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 commenced operations in 2017 and its product suite includes a range of deposit products including saving accounts, salary accounts, current accounts, recurring and fixed deposits, and locker facilities.

As of March 2023, the lender's operations were spread across 26 states and Union Territories with 830 banking outlets serving 3.6 million customers majorly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh.

The bank's gross loan portfolio has grown to Rs 13,957.11 crore as of March 31, 2023, from Rs 8,415.66 crore as of March 31, 2021. Its disbursements increased to Rs 12,442.89 crore in fiscal 2023 from Rs 5,914.01 crore in fiscal 2021. Also, deposits surged to Rs 13,710.14 crore from Rs 7,507.57 crore during the period.

Following successful completion of the IPO, Utkarsh would join the league of other small finance banks such as AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, and Suryoday Small Finance Bank to list on the stock exchanges. ICICI Securities and Kotak Mahindra Capital Company are the book-running lead managers to the issue.