Utkarsh Small Finance Bank Ltd IPO
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Utkarsh Small Finance Bank Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 2,173.91 L | TBA | ₹ 215.39 L | ₹ 7,592.72 L | BSE | ₹ 500 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 12 Jul, 23 | 14 Jul, 23 | 600 | ₹ 13,800 | Book Building | 21 Jul, 23 |
Utkarsh Small Finance Bank Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Banks - Private Sector |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 0x | 161543478 | 0 |
| NII | 0x | 32308696 | 0 |
| Retail | 0x | 21539130 | 0 |
| Employee | 0x | 2000000 | 0 |
| Total | 0x | 217391304 | 0 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Utkarsh Small Finance Bank Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 724.65 | 594.47 | 120.60 |
| EBITDA | 789.92 | 653.13 | 161.48 |
| PAT | 497.63 | 404.50 | 61.46 |
| Total Assets | 3,547.03 | 2,886.08 | 2,201.17 |
| Share Capital | 1,099.46 | 895.90 | 895.52 |
| Total Borrowings | 2,514.64 | 2,719.20 | 2,901.45 |
| Operating Activities (Net Cash) | 562.90 | 463.16 | 102.34 |
| Investing Activities (Net Cash) | 3,669.19 | 2,857.59 | 2,347.00 |
| Financing Activities (Net Cash) | 2,514.64 | 2,719.20 | 2,901.45 |
| Net Cashflow | 3,027.47 | 2,516.36 | 1,871.65 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Utkarsh Small Finance Bank Ltd
The Bank was incorporated as `Utkarsh Small Finance Bank Limited' on April 30, 2016 at Varanasi, Uttar Pradesh as a public limited company under the Companies Act, 2013 and was granted a certificate of incorporation by the Registrar of Companies, Central Registration Centre. Its Promoter, Utkarsh CoreInvest Limited (formerly known as Utkarsh Micro Finance Limited), was granted an in-principle approval to establish a small finance bank (SFB), by the RBI, pursuant to its letter dated October 7, 2015. Subsequently, the Bank received the final approval of the RBI to carry on the business as an SFB on November 25, 2016. The Bank commenced its business operations on January 23, 2017 and was included in the second schedule to the RBI Act pursuant to a notification issued by the RBI dated October 4, 2017 and published in the Gazette of India (Part III - Section 4) dated November 7, 2017.
To promote financial inclusion, the Indian banking industry has seen several changes in recent years. As of March 31, 2023, the RBI has awarded SFB licences to 12 players keeping in with the government's focus on financial inclusion and inclusive banking. SFBs' target audience is the low-income segment, who can be wooed with a sachet level product suite. Unlike NBFCs, which expand horizontally with a special focus product, such as vehicle loan, microfinance loans or housing finance, SFBs can expand vertically and horizontally offering multiple loan products as well as deposit products. Loan portfolio CAGR of approximately 22% between Fiscal 2023 - Fiscal 2025 is expected for SFBs.
Utkarsh Small Finance Bank Limited is an SFB in India and recorded the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among SFBs with Gross Loan Portfolio of more than Rs. 60 billion. The Bank had the second highest provision coverage ratio among SFBs with Gross Loan Portfolio of more than Rs. 60 billion in Fiscal 2023. Its operations are focused in rural and semi-urban areas and as of March 31, 2023, it had 3.59 million customers (both deposit and credit) majorly located in rural and semiurban areas primarily in the states of Bihar and Uttar Pradesh that, in Fiscal 2022, were among the states with best asset quality but with low and moderate credit penetration
Peer Comparison:
- Equitas Small Finance Bank Ltd
- Ujjivan Small Finance Bank Ltd
- CreditAccess Grameen Ltd
- Spandana Sphoorty Financial Ltd
- Bandhan Bank Ltd
- AU Small Finance Bank Ltd
- Suryoday Small Finance Bank Ltd
- Fusion Micro Finance Ltd
Utkarsh Small Finance Bank Ltd IPO Key Points
Strengths
- Sound understanding of microfinance segment and presence in rural and semi-urban areas;
- Growing deposits with focus on retail deposits;
- Diversified distribution network with significant cross-selling opportunities;
- Focus on risk management and effective operations;
- Stable growth with cost efficient operational performance;
Risk
- The Bank is subject to stringent regulatory requirements and prudential norms of RBI and its inability to comply with such laws, regulations and norms may have an adverse effect on its business, results of operations, financial condition and cash flows.
- After the completion of the Issue, its Promoter will continue to hold substantial shareholding in the Bank.
- The bank is currently significantly dependent on its microbanking segment, particularly joint liability group (JLG) loans, and any adverse developments in this segment could adversely affect its business, results of operations, financial condition and cash flows.
Strategy
- Continue diversifying its retail asset portfolio
- Grow retail deposits mix across geographies and customer segments to build stable funding source
- Increase share of fee income and capitalize on cross-selling opportunities
- Increasing use of technology and digital offerings for last mile delivery to customers
- Sound understanding of microfinance segment and presence in rural and semi-urban areas;
- Growing deposits with focus on retail deposits;
- Diversified distribution network with significant cross-selling opportunities;
- Focus on risk management and effective operations;
- Stable growth with cost efficient operational performance;
How To Apply for Utkarsh Small Finance Bank Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.
