The price range for the Utkarsh Small Finance Bank IPO is set at Rs. 23–25 per share

On Monday, Utkarsh Small Finance Bank said that the pricing range for its Rs 500 crore initial public offering (IPO) has been set at Rs 23–25 per share.

Public subscription for the IPO of the small finance bank (SFB) with its headquarters in Varanasi will be available from July 12 to 14. The lender said that the bids for anchor investors will start on July 11.

Through its IPO, a brand-new offer of equity shares, Utkarsh hopes to raise Rs 500 crore.

 

The new issue’s proceeds will be used to boost the lender’s tier 1 capital base in order to satisfy future capital needs.

 

Investors may place a minimum bid of 600 equity shares and then bid in multiples of 600 equity shares.

 

In addition to a variety of deposit products such savings accounts, salary accounts, current accounts, recurring and fixed deposits, and locker facilities, Utkarsh began operations in 2017.

 

The lender’s activities were spread out in 26 states and Union Territories as of March 2023, with 830 banking locations serving 3.6 million clients, the majority of whom lived in rural and semi-urban regions, particularly in Bihar and Uttar Pradesh.

 

As of March 31, 2023, the bank’s gross loan portfolio was Rs 13,957.11 crore, up from Rs 8,415.66 crore on that date.

 

From Rs 5,914.01 crore in fiscal 2021, its disbursements rose to Rs 12,442.89 crore in fiscal 2023. Additionally, throughout that time, deposits increased from Rs 7,507.57 crore to Rs 13,710.14 crore.

 

After the IPO is successfully completed, Utkarsh will join the ranks of other small finance banks that have already listed on stock markets, including AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, and Suryoday Small Finance Bank.

 

The issue’s book-running lead managers are Kotak Mahindra Capital Company and ICICI Securities.