• By Vaamanaa Sethi
  • Fri, 21 Jul 2023 11:45 AM (IST)
  • Source:JND
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After getting an overwhelming response to the initial public offering (IPO), Utkarsh Small Finance Bank has listed at a whopping 60% premium over the issue price. The stock listed at NSE at Rs 40, while made its debut at Rs 39.95 at BSE against IPO price of Rs 25.

The stock traded with a premium of Rs 15 in the unlisted market ahead of its listing at exchange houses. The 500 crore IPO was subscribed over 102 times at close, as it got a massive response from investors.

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Meanwhile, the part reserved for qualified institutional buyers was subscribed 124.8 times, while that of non-institutional investors was subscribed 81.6 times. The retail quota was subscribed 72.1 times.

As per reports, the key driving factors behind strong response for IPO is that its investors friendly pricing as compared to its peers and strong management focus.

Investors who were allotted its shares in the IPO can take 40% profit and hold the rest for a near-term target of Rs 50 per piece, stock market experts were quoted as saying by Livemint.

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Speaking on Utkarsh Small Finance Bank, Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd said, “The company has a strong track record of growth, and its financial performance has been improving in recent years. Utkarsh SFB is well-positioned to benefit from the growth of the SFB sector, as it has a strong focus on underserved segments of the population. After listing at such a level, we will suggest booking this gain; however, aggressive investors can choose to buy during any subsequent dip.”

The stock made a strong debut on the Dalal Street and extended gains around 90% against its offer price of ₹23 to ₹25 per equity share. “So, my advice to lucky allottees is to book 40 per cent profit and fish out the principal. Keep the position with the rest of the amount as it may go up to ₹50 in near term,” Vaibhav Kaushik, Research Analyst at GCL Broking, was quoted as saying by Livemint.

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