Utkarsh Small Finance Bank IPO to open on July 12; Price band at Rs 23-25 per share

Varanasi-headquartered bank Utkarsh Small Finance Bank IPO has fixed the price band at Rs 23-25 per share. It will be opening for subscription next week on July 12 and the closing date would be July 14.

The lower-upper price band is 2.3-2.5 times the face value of equity shares.

The bidding date for the anchor book will be July 11.

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

The net proceeds from the issue will be utilised towards augmenting its Tier–1 capital base to meet future capital requirements, besides issue expenses.

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, as they can exceed their investment beyond Rs 2 lakh in any IPO.

As per the CRISIL report, Utkarsh Small Finance Bank recorded the third fastest gross loan portfolio growth between FY19 and FY23 among SFBs with a gross loan portfolio of more than Rs 6,000 crore.

Utkarsh SFB 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 majorly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh, which constituted 30.88 percent and 25.98 percent of its total gross loan portfolio respectively.

The bank is on focus for further strengthening the business in newer geographies, the bank tied up with 13 business correspondents and 321 direct selling agents.

Source: Media reports