07-Jul-2023
2 mins read
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The Varanasi-headquartered Utkarsh Small Finance Bank is set to launch its Initial Public Offering (IPO), with a value of Rs 500 crore. The subscription period commences on Wednesday, July 12 and will conclude on Friday, July 14. Furthermore, the auction for anchor investors is slated to start on Tuesday, July 11.
Utkarsh Small Finance Bank Product Portfolio
Utkarsh Small Finance Bank, an Indian-based financial institution, experienced a surge in its Assets under Management (AUM). It emerged as the second quickest-growing Small Finance Bank with an AUM exceeding INR 50 billion between the fiscal years 2019 and 2022. Utkarsh CoreInvest Limited, the bank’s founding entity, initiated its business journey in the 2010 fiscal year as a Non-Banking Financial Company (NBFC). The firm concentrated on extending microfinance facilities to underprivileged segments, especially in the Uttar Pradesh and Bihar regions.
The bank’s presence spans the breadth of India, with its operations stretching across 22 states and 4 Union Territories. As of March 31, 2023, it boasted 830 banking locations and a workforce of over 15,400 individuals. Notably, 27.35% of these banking outlets were situated in Unbanked Rural Centres, surpassing the mandatory 25% rule set by regulatory authorities for Small Finance Banks.
Predominantly operating in rural and semi-urban regions, Utkarsh Small Finance Bank catered to 3.5 million customers (including depositors and borrowers) as of March 31, 2023. A significant chunk of its customer base resides in Bihar, Uttar Pradesh, and Jharkhand, regions characterised by superior asset quality yet relatively low to moderate levels of credit penetration.
Objectives of Utkarsh Small Finance Bank Limited IPO
Utkarsh Small Finance Bank Limited intends to use the net revenue from the offering to enhance its Tier-1 capital foundation to satisfy its forthcoming capital needs. Moreover, the funds raised from the offering will also be allocated to cover the expenses related to the issue.
Financial Performance of Utkarsh Small Finance Bank Limited (In Crore)
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Total Borrowing |
| 31-Mar-20 | 9,404.32 | 1,406.18 | 186.74 | 1,019.50 | 260.23 | 2,675.04 |
| 31-Mar-21 | 12,137.91 | 1,705.84 | 111.82 | 1,368.35 | 520.02 | 2,607.83 |
| 31-Mar-22 | 15,063.77 | 2,033.65 | 61.46 | 1,572.30 | 676.78 | 2,571.94 |
Important Details for Utkarsh Small Finance Bank Limited IPO
| IPO Date | Jul 12, 2023 to Jul 14, 2023 |
| Listing Date | Monday, 24 July 2023 |
| Face Value | Rs 10 per share |
| Price | ₹23 to ₹25 per share |
| Lot Size | 600 Shares |
| Total Issue Size | Aggregating up to Rs 500.00 Cr |
| Fresh Issue | Aggregating up to Rs 500.00 Cr |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 895,521,522 |
Timetable for Utkarsh Small Finance Bank Limited IPO
| Event | Date |
| Opening Date | Wednesday, 12 July 2023 |
| Closing Date | Friday, 14 July 2023 |
| Basis of Allotment | Wednesday, 19 July 2023 |
| Initiation of Refunds | Thursday, 20 July 2023 |
| Credit of Shares to Demat | Friday, 21 July 2023 |
| Listing Date | Monday, 24 July 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on Jul 14, 2023 |
Utkarsh Small Finance Bank IPO Reservation
| QIB Shares Offered | Not less than 75% of the Offer |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
Utkarsh Small Finance Bank Limited IPO Lead Manager(s)
The Lead Managers for Utkarsh Small Finance Bank Limited IPO are Icici Securities Limited and Kotak Mahindra Capital Company Limited
How to Apply for Utkarsh Small Finance Bank Limited IPO?
Wait for the public issue to open for subscription, then click on this link to apply for the Utkarsh Small Finance Bank Limited IPO with Bigul https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Utkarsh Small Finance Bank Limited IPO?
The registrar for Utkarsh Small Finance Bank Limited IPO is Kfin Technologies Limited. To check your allotment status, please click on this link https://ris.kfintech.com/ipostatus/
FAQs
- What is the Utkarsh Small Finance Bank Limited IPO?
Utkarsh Small Finance Bank Limited plans to launch an Initial Public Offering (IPO) soon. The IPO primarily aims to increase its Tier-1 capital base to meet future capital requirements and cover the expenses associated with the issue.
- When is the Utkarsh Small Finance Bank Limited IPO launch?
The subscription period commences on Wednesday, July 12 and will conclude on Friday, July 14. The auction for anchor investors is slated to start on Tuesday, July 11.
- What is the face value of the shares?
The face value of each share is Rs 10.
- What is the total issue size of the IPO?
The IPO’s total issue size aggregates up to Rs 500.00 Crore.
- Who are the lead managers for the Utkarsh Small Finance Bank Limited IPO?
The IPO lead Managers are ICICI Securities Limited and Kotak Mahindra Capital Company Limited.
- How can I apply for the Utkarsh Small Finance Bank Limited IPO?
Once the public issue opens for subscription, you can apply for the Utkarsh Small Finance Bank Limited IPO using this link: https://ipo.bonanzaonline.com/.
- How can I check the allotment status of the Utkarsh Small Finance Bank Limited IPO?
The registrar for the IPO is Kfin Technologies Limited. To check your allotment status, please visit https://ris.kfintech.com/ipostatus/.
- What reservations are for QIB, NII (HNI), and Retail Shares in the Utkarsh Small Finance Bank IPO?
The QIB Shares offered will be not less than 75% of the Offer, NII (HNI) Shares Offered will be not more than 15% of the Net Issue, and the Retail Shares will be not more than 10% of the Net Issue.