Utkarsh Small Finance Bank IPO: Schedule, price band and other details

NEW DELHI: The IPO of Utkarsh Small Finance Bank is scheduled to open on July 12, 2023 and close on July 14, 2023. The bank is looking to raise Rs 500 crore through the IPO.
The Varanasi-headquartered Utkarsh SFB, which operates in 26 states and Union Territories, boasts a significant presence with 830 banking outlets and a workforce of 15,424 employees as of March 2023.The bank has successfully built a customer base of 3.59 million, primarily concentrated in rural and semi-urban areas, particularly in Bihar and Uttar Pradesh. These two regions alone account for 30.88 percent and 25.98 percent, respectively, of the bank's total gross loan portfolio.
The bank has a strong track record of growth, with its loan book and deposits growing at a CAGR of 38% and 32% respectively over the past three years. The bank is well-capitalized, with a Tier-1 capital ratio of 13.2% as of March 2023.
Here are some key details on Utkarsh Small Finance Bank IPO:
*The IPO is scheduled to open on July 12, 2023 and close on July 14, 2023.
*The bank is looking to raise ₹500 crore through the IPO.
*The issue size consists of a fresh issue of 200,000,000 equity shares of ₹10 each.
*The price band for the IPO is ₹23-₹25 per share.
*Investors have the opportunity to bid for a minimum of 600 equity shares, with the option to bid in multiples of 600 shares thereafter.
*As part of the offer, Utkarsh SFB has allocated a reservation of up to 1 percent of the issue size for its employees. This reservation translates to Rs 5 crore or 20 lakh shares.
*The shares are proposed to be listed on BSE and NSE.
Notably, Utkarsh SFB will become the fifth small finance bank to be listed on the stock exchange, joining the ranks of Ujjivan Small Finance Bank, AU Small Finance Bank, Equitas Small Finance Bank, and Suryoday Small Finance Bank. This development reflects the bank's growth trajectory and its increasing significance in the financial sector.
ICICI Securities and Kotak Mahindra Capital Company have been appointed as the merchant bankers, while Kfin Technologies will serve as the registrar for the issue.
(With inputs from agencies)