Utkarsh Small Finance Bank IPO: Check dates, price band, lot size, GMP, other details

Utkarsh Small Finance Bank’s shares sale via initial public offering (IPO) will begin from July 12 and end on July 14. The bank has fixed a price band of Rs 23-25 per share for the IPO, which aims to raise Rs 500 crore through a fresh issue of equity shares. The bidding for anchor investors will begin on July 11, according to the bank.

Utkarsh Small Finance Bank IPO details

The primary objective of the IPO is to augment Utkarsh Small Finance Bank's tier 1 capital base to meet its future capital requirements. Retail investors can bid for a minimum one lot of 600 equity shares up to maximum of 13 lots. One lot of Utkarsh Small Finance Bank shares will cost Rs 15,000 in the IPO.

Since its establishment in 2017, Utkarsh Small Finance Bank has developed a diverse product suite that includes various deposit products such as savings accounts, salary accounts, current accounts, recurring deposits, fixed deposits, and locker facilities.

With a presence in 26 states and union territories, the bank operates through 830 banking outlets, catering primarily to 3.6 million customers located in rural and semi-urban areas, particularly in Bihar and Uttar Pradesh.

As of March 2023, Utkarsh Small Finance Bank's gross loan portfolio stood at Rs 13,957.11 crore, a significant increase from Rs 8,415.66 crore in March 2021. Additionally, the bank's disbursements rose from Rs 5,914.01 crore in fiscal 2021 to Rs 12,442.89 crore in fiscal 2023. The bank also experienced growth in its deposits, which increased from Rs 7,507.57 crore to Rs 13,710.14 crore during the same period.

Upon the successful completion of the IPO, Utkarsh Small Finance Bank will join the ranks of other small finance banks, including AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, and Suryoday Small Finance Bank, that are already listed on the stock exchanges.

ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue and Kfin Technologies Limited is the registrar. 

(With inputs from PTI)