Utkarsh Small Finance Bank IPO Day 1; Check IPO Price Band, GMP, Lot Size, And Other Details Here

The Initial Public Offering (IPO) of Utkarsh Small Finance Bank has opened for subscription today (July 12), and the IPO window of the small finance bank will close for subscription on July 14. The bidding date for the anchor book was July 11.

The company has set the price band for the IPO in the range of Rs 23-25 per share. The lower-upper price band is 2.3-2.5 times the face value of equity shares.

The small finance bank aims to raise Rs 500 crore through its maiden public issue, which comprises only a fresh issue portion. The offer included a reservation of up to 1% of the issue size for its employees, which comes up to Rs 5 crore or 20 lakh shares.

Utkarsh Small Finance Bank has raised Rs 222.75 crore from 20 anchor investors. The allocation of 8.91 crore equity shares to anchor investors, at Rs 25 per share (the upper price band), was finalised, the company said in its exchange filing.

The company's anchor investors included Aditya Birla Sun Life Mutual Fund (MF), Edelweiss MF, ICICI Prudential MF, Kotak Mahindra MF, Goldman Sachs, Massachusetts Institute of Technology Basic Retirement Plan Trust, among others. 

The IPO of the Varanasi-headquartered bank is a completely fresh sale of 20 crore equity shares amounting to Rs 500 crore. The company will utilize the net proceeds from the issue will be utilised towards augmenting its Tier–1 capital base to fulfil future capital requirements, and issue expenses. Incorporated in 2016, Utkarsh SFB started operations in 2017 and its product offering includes a range of deposit products, including saving accounts, current accounts, salary accounts, recurring deposits, fixed deposits (FDs) and locker facilities.

Utkarsh SFB IPO Market Lot

Investors can bid for a minimum of 600 equity shares and in multiples of 600 shares thereafter, which means retail investors can apply for minimum shares worth Rs 15,000 per lot and their maximum investment would be Rs 1.95 lakh for 13 lots, at an upper price band of Rs 25 per share, as they can exceed their investment beyond Rs 2 lakh in any IPO.

The company has reserved almost 75% of the issue size for qualified institutional buyers (QIBs), 15% for high-net-worth individuals, and the rest 10% for retail investors.

Utkarsh Small Finance Bank Limited (USFBL) started banking operations in 2017 to aid in the financial inclusion of the underbanked and the unbanked masses of the country. The lender received the final RBI licence to commence full-fledged operations as a small finance bank in 2016-17 and it claims to be one of the most profitable small finance banks (SFBs) in India.

Headquarters in Varanasi Utkarsh SFB is equipped with a widespread distribution network with operations across 26 states and Union Territories with 830 banking outlets and 15,424 employees as of March 2023 had a 3.59 million customer base mostly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh, ensuring financial inclusion in rural and semi-urban markets. 

Utkarsh Small Finance Bank registered the third fastest gross loan portfolio growth between FY19 and FY23 among SFBs with a gross loan portfolio of over Rs 6,000 crore according to the CRISIL report.

What is the Utkarsh Small Finance Bank IPO Listing Date?

The tentative listing date for the lender's shares on Indian bourses BSE and NSE is July 24 (Monday).

Utkarsh Small Finance Bank GMP Today

According to Financial Express, Utkarsh Small Finance Bank shares’ grey market premium (GMP) soared 64% on Wednesday, commanding a premium of Rs 16 over the upper end of the IPO price.