Utkarsh Small Finance Bank IPO to open on July 12; sets the price range at 23-25 ​​rupees/share

Utkarsh Small Finance Bank said on Monday it had set a price range of Rs 23-25 ​​per share for its Rs 500 crore initial public offering (IPO). Varanasi-headquartered Small Finance Bank (SFB) IPO will open for public subscription meanwhile 12-14. July. The tender for anchor investors will open on July 11, the lender said.

Utkarsh aims to raise Rs.500 crore through its IPO, which is an entirely new issue of shares. Proceeds from the new issue will be used to increase the lender’s Tier 1 capital base to meet future capital requirements. Investors can bid for a minimum of 600 shares and thereafter in multiples of 600 shares.

Utkarsh began operations in 2017 and its product range includes a range of deposit products including savings accounts, salary accounts, current accounts, recurring and fixed deposits and safe deposit box facilities. As of March 2023, the lender’s operations were spread across 26 states and union territories and had 830 bank branches serving 3.6 million customers, mostly in rural and semi-urban areas, primarily in Bihar and Uttar Pradesh.

The gross loan portfolio of the bank has grown from Rs. 8,415.66 crore as of 31 March 2021 to Rs. 13,957.11 crore as of 31 March 2023. Disbursements increased from Rs.5,914.01 crore in FY2021 to Rs.12,442.89 crore in FY2023. Deposits increased from Rs.7,507.57 crore to Rs.13,710.14 crore during the period.

Upon successful completion of the IPO, Utkarsh would join the league of other small finance banks such as AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank and Suryoday Small Finance Bank and list on the stock exchanges. ICICI Securities and Kotak Mahindra Capital Company are the lead bookers of the offering.