Utkarsh Small Finance Bank IPO: Check IPO Details, Date, Price | Espresso

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Utkarsh Small Finance Bank Limited IPO opens on July 12. Check IPO Details Issue Date Price

July 11, 2023
Utkarsh Small Finance Bank Limited IPO opens on July 12. Check IPO Details Issue Date Price

Utkarsh Small Finance Bank Limited is coming out with a fresh public issue to raise Rs. 500 crores from the market.

Below are the details of the Utkarsh Small Finance Bank Limited IPO:

  • Issue opens – July 12 (Wednesday)
  • Issue closes – July 14 (Friday)
  • Issue size – Rs. 500 crores
  • Price band – Rs. 23 to 25 per equity share
  • Bid lot – 600 shares and in multiples thereof.

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And here are some details of the company and further details on the Utkarsh Small Finance Bank Limited IPO.

Company details:

  • Utkarsh Small Finance Bank Limited are 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 ? 60 billion. (Source: CRISIL Report, page 133) Their Promoter, Utkarsh CoreInvest Limited, commenced its operations as a 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. They have their headquarters located in Varanasi, Uttar Pradesh and have over the years expanded their SFB operations strategically in States where they have been able to leverage the prior microfinance experience of Utkarsh CoreInvest Limited.
  • Their operations are spread across India and are present in 26 States and Union Territories with 830 Banking Outlets and 15,424 employees, as of March 31, 2023. As of March 31, 2023, 27.35% of their Banking Outlets were located in Unbanked Rural Centres (“URCs”) as against the regulatory requirement of 25% of banking outlets of SFBs to be located in URCs. Their operations are focused in rural and semi-urban areas and as of March 31, 2023, they had 3.59 million customers (both deposit and credit) majorly located in rural and semi-urban areas primarily in the states of Bihar and Uttar Pradesh that, in Fiscal 2022, are among the states with the best asset quality but with low and moderate credit penetration.
  • They are also focused on further strengthening their presence in newer geographies in addition to existing states where they operate by entering into arrangements with business correspondents (“BCs”) and direct selling agents (“DSAs”) and as of March 31, 2023, they had tie-ups with 13 BCs to source customers and 321 DSAs to grow their asset portfolio.
  • They offer a range of financial products and services that address the specific requirements of their customer segments while assessing factors including income profile and the type of security available. Their asset products include (i) microbanking loans that include joint liability group loans, and individual loans; (ii) retail loans that includes unsecured loans, such as business loans and personal loans, and secured loans, such as loans against property (“LAP”) (iii) wholesale lending that includes short term and longterm loan facilities to SMEs, mid and large corporates and institutional clients; (iv) housing loans with a focus on affordable housing; (v) commercial vehicle / construction equipment loans; and (vi) gold loans that was launched in Fiscal 2022. On the liabilities side, they offer savings accounts, current accounts and a variety of term and recurring deposit accounts. In addition, they also provide non-credit offerings comprising ATM-cum-debit cards, bill payment system and distribute third party point of sales terminals, mutual funds and insurance products.

Issue Size:

Rs. 500 crores

Employee Reservation: 

20,00,000 Equity shares amounting to Rs. 5 crores.

Net Issue break-up:

  • QIB – 75% of the offer – Rs. 371.25 crores
  • NIB – 15% of the offer – Rs. 74.25 crores
  • RET – 10% of the offer – Rs. 49.50 crores

Listing:

BSE and NSE

Registrar:

KFin Technologies Limited

UPI:

All Retail & NII bidders' (bids up to Rs. 5,00,000) applications through brokers are compulsorily in UPI Mode.

Note:

  • Application made using third party UPI or ASBA Bank A/c are liable to be rejected. 
  • The UPI Mandate acceptance time for Retail and NII Bidders (bids up to Rs. 5,00,000) shall expire at 5:00 PM on the closing day of the IPO i.e. Friday, July 14, 2023     

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