Utkarsh Small Finance Bank IPO opens tomorrow

The subscription for the Utkarsh Small Finance Bank IPO is set to begin this week, with the anchor investor bidding scheduled for today.

Utkarsh Small Finance Bank is a prominent small finance institution operating across India. It is promoted by Utkarsh CoreInvest Ltd, which started as an NBFC in Fiscal 2010, focusing on providing microloans to underserved areas, primarily in Uttar Pradesh and Bihar.

The bank had previously filed a draft red herring prospectus (DRHP) in July 2021, aiming to raise ₹1,350 crore through a new issue of ₹750 crore and an offer for sale (OFS) by its owner, Utkarsh Coreinvest, for ₹600 crore.

However, in August 2022, the bank submitted amended draft papers to SEBI, reducing the issue size by 63% to raise ₹500 crore through the IPO. Initially, the plan was to raise ₹1,350 crore.

ten key points to note about the Utkarsh Small Finance Bank IPO:

1. IPO Dates: The IPO opens on Wednesday, July 12, and closes on Friday, July 14.

2. Anchor Investors: The auction for anchor investors will begin on Tuesday, July 11.

3. Price Band: The price range for the IPO is set at ₹23 to ₹25 per equity share.

4. Issue Details and Size: The IPO consists of a fresh issue of equity shares worth up to ₹500 crore, with no offer for sale (OFS) component. The face value of each equity share is ₹10.

5. Lot Size: The minimum bid lot is 600 equity shares, and investors can bid in multiples of 600 equity shares.

6. Allotment and Listing: The basis of share allotment will be finalized on Wednesday, July 19. Refunds will be initiated on Thursday, July 20, and shares will be credited to allottees\’ demat accounts on Friday, July 21. Utkarsh Small Finance Bank shares are expected to be listed on BSE and NSE on Monday, July 24.

7. Lead Manager and Registrar: ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers for the IPO, and KFin Technologies Ltd is the registrar to the issue.

8. Promoter Shareholding: The sole promoter of the bank is Utkarsh CoreInvest Limited . As of the date of the Red Herring Prospectus, the promoter and its nominees collectively held 759,272,222 equity shares, accounting for 84.75% of the pre-IPO issued shares.

9. IPO March 2023, the bank\’s tier-1 capital base stood at ₹1,844.82 crore, or 18.25% of total assets.

10. IPO Reservation: The company has reserved at least 75% of the shares for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Investors (NIIs), and a maximum of 10% for Retail Investors.

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