Utkarsh Small Finance Bank IPO will open for subscription from 12 July 2023. the company aims for an issue size of ₹500 Cr through this IPO.
Company Overview
| Full name | Utkarsh Small Finance Bank Limited |
| Sector | Banking |
| Industry | Bank-Private |
| Company Website | https://www.utkarsh.bank/ |
About Company
The bank is an SFB in India and recorded the second fastest Assets under management (AUM) growth between Fiscal 2019 and Fiscal 2022 among Small Finance Bank with AUM of more than INR 50 billion. Its Promoter, Utkarsh CoreInvest Limited, commenced its operations as an NBFC in Fiscal 2010 and was focused on providing microfinance to unserved and underserved segments and in particular in the states of Uttar Pradesh and Bihar.
Its operations are spread across India and are present in 22 States and 4 Union Territories with 830 Banking Outlets and 15,400 employees, as of 31 March 2023. As of 31 March 2023, 27.35% of the Banking Outlets were located in Unbanked Rural Centres as against the regulatory requirement of 25% of banking outlets of SFBs to be located in URCs. Its operations are focused in rural and semi-urban areas.
As of 31 March 2023, the company had 3.5 million customers (both deposit and credit) majorly located in rural and semi-urban areas primarily in the states of Bihar, Uttar Pradesh, and Jharkhand that have the best asset quality among other states but with low and moderate credit penetration.
The Objective of the Issue
- The Utkarsh Small Finance Bank Limited proposes to utilize the Net Proceeds from the Issue towards augmenting its Tier-1 capital base to meet its future capital requirements. Further, the proceeds from the Issue will also be used towards meeting the expenses in relation to the Issue.
IPO Timetable
| IPO Opening date | 12 July 2023 |
| IPO Closing | 14 July 2023 |
| Basis of Allotment | 19 July 2023 |
| Initiation Refund | 20 July 2023 |
| Credit to Demat Account | 21 July 2023 |
| Listing Date | 24 July 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹500 Cr – 200,000,000 shares |
| Fresh Issue | ₹500 Cr – 200,000,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹23 to ₹25 per share |
| Lot size | 600 Shares |
| Retail Allocation | 10% |
| Listing Exchange | BSE & NSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 600 | ₹15,000 |
| Retail (Max) | 13 | 7800 | ₹195,000 |
| S-HNI (Min) | 14 | 8,400 | ₹210,000 |
| S-HNI (Max) | 66 | 39,600 | ₹990,000 |
| B-HNI (Min) | 67 | 40,200 | ₹1,005,000 |
Reservation Details
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Financial Performance
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 1,580.99 | 1,848.81 | 2,504.98 |
| Expenses | 1,594.02 | 1,972.18 | 2,399.78 |
| Net income | 111.81 | 61.46 | 404.50 |
| Margin (%) | 7.07 | 3.32 | 16.15 |
Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 1.46 | 0.70 | 4.52 |
| PE ratio | – | – | 5.09 – 5.53 |
| RONW (%) | 8.17 | 3.91 | 20.22 |
| NAV | 16.13 | 17.56 | 22.23 |
| Debt/Equity | 7.39 | 8.04 | 8.03 |
Company Promoters
- Utkarsh CoreInvest Limited.
Promoter Holding
| Pre Issue Share Holding | 84.75% |
| Post Issue Share Holding | 69.28% |
Lead Manager(s)
- Icici Securities Limited
- Kotak Mahindra Capital Company Limited
IPO Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda,
Serilingampally, Hyderabad – 500 032
Phone: +91 40 6716 2222
Email: utkarsh.ipo@kfintech.com
Website: www.kfintech.com
Contact Details
UTKARSH SMALL FINANCE BANK
Utkarsh Tower, NH – 31 (Airport
Road), Sehmalpur, Kazi Sarai, Harhua,
Varanasi 221 105, Uttar Pradesh
Phone: +91 542 660 5555
Email: shareholders@utkarsh.bank
Website: www.utkarsh.bank
Allotment Status
Utkarsh SFB IPO allotment will be available on the KFin Tech website. Click on this link to get allotment status.
Final thoughts
Utkarsh Small Finance Bank IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
