Utkarsh Small Finance Bank IPO to open on July 12; Check price band and other details

The initial public offering (IPO) of Utkarsh Small Finance Bank (SFB) will kick off for subscription on Wednesday, July 12. The private lender will sell its shares in the range of Rs 23-25 apiece during the three-day bidding process, which concludes on Friday, July 14.

The issue is entirely a fresh sale of 20 crore equity shares amounting to Rs 500 crore. Investors can make a bid of a minimum of 600 equity shares and its multiples thereafter. The anchor book opens for the issue on Tuesday, July 11. The net proceeds from the issue will be utilized towards augmenting its Tier-I capital base to meet its future capital requirements and meeting the issue.

Incorporated in 2016, Utkarsh Small Finance Bank is a small finance bank in India, which recorded the second fastest AUM growth in the years financial year 2018-19 and financial year 2021-2022. The private lender has an asset under management (AUM) of more than 6,000 crore.

After receiving in-principal approval from the Reserve Bank of India (RBI) in October 2015 to establish a small finance bank, promoter Utkarsh CoreInvest incorporated Utkarsh Small Finance Bank as a wholly-owned subsidiary in April 2016, , which commenced its operations in January 2017.

Varanasi-headquartered Utkarsh Small Finance Bank has operations across 26 states and Union Territories with 830 banking outlets and 15,424 employees as of March 31, 2023. It had a 3.59 million customer base majorly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh.

The lender has reserved 20 lakh shares worth Rs 5 crore for the eligible employees. not less than 75 per cent of the net offer shall be reserved for the qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the net offer. Retail investors will get the remaining 10 per cent of reservation in the offer.

ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue, while Kfin Technologies has been appointed as the registrar to the issue. Shares of the lender will be listed on both BSE and NSE with July 24 (Monday) as the tentative date of listing.


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