Utkarsh Small Finance Bank IPO: Review, Price Allotment, Analysis

Welcome to our in-depth analysis of the Utkarsh Small Finance Bank IPO! As experts in our field, our goal is to offer comprehensive insights, expert analysis and accurate information that can assist in making well-informed decisions regarding this offering.

Utkarsh Small Finance Bank is an innovative financial institution committed to financial inclusion that serves the unbanked and underbanked sections of society. As one of India’s key banking players, this innovative institution stands as a symbol for hope across India’s unbanked communities.

Utkarsh Small Finance Bank will hold its Initial Public Offering from July 12-14 in an attempt to raise around Rs500 crores through this venture, consisting of both fresh issue capital of Rs500 crores as well as offering shares at a price point of Rs10 per share for sale to retail investors and 75% allocation to qualified institutional buyers (QIB) while 15% being reserved for high net-worth individuals (HNIs).

Utkarsh Small Finance Bank IPO: Review, Price Allotment, Analysis

Utkarsh Small Finance Bank IPO

Utkarsh Small Finance Bank, situated in Varanasi, Uttar Pradesh, has strategically expanded its SFB operations in states where the prior microfinance experience of Utkarsh CoreInvest Limited could be leveraged. The bank’s operations span across India, reaching 22 states and union territories, with a total of 686 banking outlets and 12,617 employees as of March 31, 2022. It is worth noting that by the same date, 27.70% of the banking outlets were located in Unbanked Rural Centres (URCs), surpassing the regulatory requirement of 25% for SFBs.

In terms of asset products, Utkarsh Small Finance Bank offers micro banking loans, including joint liability group loans and individual loans, as well as retail loans, which consist of unsecured loans (e.g., business loans and personal loans) and secured loans (e.g., loans against property). Additionally, the bank provides wholesale lending services, offering short-term and long-term loan facilities to SMEs, mid and large corporates, and institutional clients. There is also a focus on housing loans, particularly for affordable housing, and loans for commercial vehicles or construction equipment.

In Fiscal 2022, the bank introduced gold loans as a new product. The majority of the bank’s 3.14 million customers are located in rural and semi-urban areas, primarily in Bihar, Uttar Pradesh, and Jharkhand. These regions have demonstrated better asset quality compared to other states, although credit penetration remains low to moderate.

Given Utkarsh CoreInvest Limited’s legacy as a non-banking finance company-microfinance institution (NBFC-MFI), microfinance continues to be a key business segment for Utkarsh Small Finance Bank. However, the bank is actively diversifying its product portfolio, which currently comprises 154 products, to include non-micro banking loans.

This strategic move aims to reduce dependence on microfinance and foster growth in the secured loan portfolio. Moreover, the bank offers a wide range of financial products and services tailored to the specific needs of its customer segments, taking into account factors such as income profile and available collateral.

Brokerage Firm IPO Review

  • HENSEX Securities: Apply
  • Reliance Securities: Apply

Utkarsh Small Finance Bank began accepting subscriptions on July 12, 2023 and closed them two days later with prices set between Rs 23-25 per share – raising over Rs 500 crore!

Details of the Utkarsh Small Finance Bank IPO:

  • IPO size: Rs. 500 crore
  • Price band: Rs. 23 to Rs. 25 per share
  • Issue date: July 12, 2023
  • Closing date: July 14, 2023
  • Lot size: 600 shares
  • Listing date: July 24, 2023

The IPO was subscribed 2.23 times with retail investors bidding 2.57 times their allotted shares; QIBs subscribed 1.94 times the alloted amount and HNIs 1.45.

Investors were impressed by Utkarsh Small Finance Bank’s initial public offering (IPO). On day of listing, grey market premium reached Rs 16 per share indicating investor optimism about future prospects of the bank.

If you are considering investing in the Utkarsh Small Finance Bank IPO, it is crucial that you do your own research and understand all risks. While an IPO provides an exciting opportunity to tap into an emerging sector, keep in mind that no guarantees can be given on returns.

Utkarsh Small Finance Bank IPO Date & Price Band Details

IPO Open:12 July 2023
IPO Close:14 July 2023
IPO Size:Approx ₹500 Crores
Fresh Issue:Approx ₹500 Crores
Face Value:₹10 Per Equity Share
IPO Price Band:₹23 to ₹25 Per Share
IPO Listing on:BSE & NSE
Retail Quota:10%
QIB Quota:75%
 NII Quota:15%
Discount:N/A
DRHP Draft Prospectus:Click Here
RHP Draft Prospectus:Click Here
Anchor Investors List:Click Here

Utkarsh SFB IPO Market Lot

Utkarsh Small Finance Bank IPO minimum market lot is 600 shares with an application amount of Rs15,000. Retail investors may submit up to 13 lots with 7800 shares or Rs195,000 total application value.

ApplicationLot SizeSharesAmount
Retail Minimum1600₹15,000
Retail Maximum137800₹195,000
S-HNI Minimum148400₹210,000
B-HNI Minimum6840200₹10,05,000

Utkarsh Small Finance Bank IPO Allotment & Listing Dates

Utkarsh Small Finance Bank will hold their initial public offering (IPO) date on 12 July 2023 with closing on 14 July. Allotment for their IPO allotment will occur between 19-24 July and they plan on listing 24 July.

Price Band Announcement:7 July 2023
Anchor Investors Allotment:11 July 2023
IPO Open Date:12 July 2023
IPO Close Date:14 July 2023
Basis of Allotment:19 July 2023
Refunds:20 July 2023
Credit to Demat Account:21 July 2023
IPO Listing Date:24 July 2023

Utkarsh Small Finance Bank IPO Form

How to apply for Utkarsh Small Finance Bank IPO?

Apply for Utkarsh Small Finance Bank IPO through ASBA available in your bank account by accessing online bank login and selecting Utkarsh Small Finance Bank IPO from Invest section of online login page. Alternatively you may download forms via NSE/BSE to make applications as well.

Utkarsh Small Finance Bank Company Financial Report

  ₹ in Crores
YearRevenueExpensePAT
2020₹1406.18₹1219.44₹186.74
2021₹1705.84₹1594.02₹111.81
2022₹2033.65₹1972.18₹61.46
2023₹2804.09₹2399.78₹404.50

Utkarsh Small Finance Bank IPO Valuation – FY2022

Check Utkarsh Small Finance Bank IPO valuation details such as Earning Per Share (EPS), Price/Earning P/E Ratio, Return On Net Worth (RoNW), and Net Asset Value (NAV).

Earning Per Share (EPS):₹0.70 per Equity Share
Price/Earning P/E Ratio:N/A
Return on Net Worth (RoNW):3.91%
Net Asset Value (NAV):₹17.56 per Equity Share

Peer Group

  • Equitas Small Finance Bank
  • Ujjivan Small Finance Bank Limited
  • Credit Access Grameen Limited
  • Spandana Sphoorty Financial Limited
  • Bandhan Bank Limited
  • AU Small Finance Bank Limited
  • Suryoday Small Finance Bank
Company PromotersUtkarsh CoreInvest Limited
Utkarsh Small Finance Bank IPO RegistrarKfin Technologies Limited
Phone: 04067162222, 04079611000
Email: [email protected]
Website: https://ris.kfintech.com/ipostatus/
Utkarsh Small Finance Bank IPO Allotment StatusCheck Utkarsh Small Finance Bank IPO allotment status on Kfin Technologies website allotment URL. Click Here

Utkarsh Small Finance Bank IPO Lead Managers aka MerchantICICI Securities Limited
Kotak Mahindra Capital Company Limited

Company Address

  • Utkarsh Small Finance Bank Limited
  • Utkarsh Tower, NH – 31 (Airport Road),
  • Sehmalpur, Kazi Sarai, Harhua,
  • Varanasi – 221 105
  • Phone: +91 542 660 5555
  • Email: [email protected]
  • Website: https://www.utkarsh.bank/

Utkarsh Small Finance Bank IPO FAQs

What is Utkarsh Small Finance Bank IPO?

Utkarsh Small Finance Bank is planning to launch a main-board initial public offering (IPO) to raise ₹500 Crores. The offering will be priced at ₹23 to ₹25 per equity share. The IPO is set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

When Utkarsh Small Finance Bank IPO will open?

The Initial Public Offering (IPO) is scheduled to commence on July 12, 2023, welcoming participation from Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors.

What is Utkarsh Small Finance Bank IPO Investors Portion?

In terms of the investor allocation for the Qualified Institutional Buyers (QIB), it stands at 75%, while Non-Institutional Investors (NII) make up 15% and the Retail segment represents 10%.

How to Apply the Utkarsh Small Finance Bank IPO?

Applying for the Utkarsh Small Finance Bank IPO is convenient and can be accomplished using different methods. One approach involves filing online via your bank account using Utkarsh; UPI allows for connection with stock brokers; or filling out and mailing in an application form directly provided by them.

How to Apply the Utkarsh Small Finance Bank IPO through Upstox?

Log into Upstox Website or Application Console, navigate to Portfolio, then IPO (Utkarsh Small Finance Bank IPO). Select Bid Button; fill in UPI ID, Quantity, Price; submit bid IPO Application Form then authorize via UPI App on Net Banking/BHIM App before opening demat Account with Upstox.

What is Utkarsh Small Finance Bank IPO Size?

Utkarsh Small Finance Bank IPO size is ₹500 crores.

What is Utkarsh Small Finance Bank IPO Price Band?

Utkarsh Small Finance Bank IPO Price Band is ₹23 to ₹25.

What is Utkarsh Small Finance Bank IPO Minimum and Maximum Lot Size?

Minimum bid amount for 600 shares with Rs15000 bid amount while maximum bidding amount for 7800 shares totalling Rs195000 will apply.

What is the Utkarsh Small Finance Bank IPO Allotment Date?

Utkarsh Small Finance Bank IPO allotment date is July 19, 2023.

What is the Utkarsh Small Finance Bank IPO Listing Date?

Utkarsh Small Finance Bank will have their IPO listing date on July 24, 2023 at both BSE and NSE exchanges.

Conclusion

Utkarsh Small Finance Bank IPO presents investors with an attractive investment opportunity. Boasting outstanding financial performance, an emphasis on financial inclusion and an experienced management team – this bank stands to become a success! By adhering to its application process and remaining informed regarding risk and challenges associated with an IPO offering investors can make informed decisions and potentially reap significant returns – act now by joining this promising investment venture!

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