Utkarsh Small Finance Bank is going to sell its shares to the public. The sale will start on July 12 and end on July 14. The bank has set the price of each share between Rs 23 and Rs 25. The IPO aims to raise Rs 500 crores. Retail investors can buy a minimum of 600 shares and a maximum of 13 lots. One lot of shares costs Rs 15,000.
The money raised from the IPO will be used to strengthen Utkarsh Small Finance Bank’s capital base. This will help the bank to meet its future capital requirements.
IPO Important Details
- Issue period: 12 July 2023 to 14 July 2023
- Type of issue: Fresh issue of Rs 5,000 million (m)
- Price band: Rs 23 to Rs 25 per share
- Face value: Rs 10 per equity share
- Lot size: 600 shares
- Application limit: Maximum one lot for retail investors
The company has reserved not less than 75% shares of the offer for qualified institutional buyers (QIB). It has reserved not less than 15% for non-institutional buyers (HNI). Hence not more than 10% of shares are available for retail individual investors. - Tentative IPO allotment date: 19 July 2023
- Tentative listing date: 24 July 2023
Utkarsh Small Finance Bank’s Data
| Particulars | FY23 | FY22 | FY21 |
| Total Income | ₹2,804 crore | ₹2,033 crore | ₹1,705 crore |
| Net Profit | ₹404 crore | ₹61 crore | ₹111 crore |
As of March 2023, Utkarsh Small Finance Bank’s gross loan portfolio stood at Rs 13,957.11 crore, a significant increase from Rs 8,415.66 crore in March 2021. Additionally, the bank’s disbursements rose from Rs 5,914.01 crore in fiscal 2021 to Rs 12,442.89 crore in fiscal 2023. The bank also experienced growth in its deposits, which increased from Rs 7,507.57 crore to Rs 13,710.14 crore during the same period.
Comparison of Utkarsh Small Finance Bank with other banks
| Company | Total Income (2023) (Rs in m) | Net Profit (Rs in m) |
|---|---|---|
| Utkarsh Small Finance Bank | 28,042.9 | 4,045.0 |
| Equitas Small Finance Bank | 48,314.6 | 5,735.9 |
| Ujjivan Small Finance Bank | 47,541.9 | 10,999.0 |
| Credit Access Grameen | 35,507.9 | 35,507.6 |
| Spandana Sphoorty Financials | 14,770.3 | 13,286.6 |
| Bandhan Bank | 183,732.5 | 21,946.4 |
| AU Small Finance Bank | 92,398.7 | 92,398.7 |
| Suryoday Small Finance Bank | 12,811.0 | 777.0 |
| Fusion Micro Finance | 17,999.7 | 3,871.5 |