Utkarsh Small Finance Bank is coming out with a fresh issue of equity shares (IPO) aggregating up to Rs. 500 crore.
The face value of each Utkarsh Small Finance Bank equity share is Rs. 10. There is no offer for sale (OFS) component attached to the IPO according to the red herring prospectus (RHP).
The sole promoter of the bank is Utkarsh CoreInvest Limited, which was formerly known as Utkarsh Micro Finance Limited. The promoter and its nominees collectively hold 84.75% of the pre-issue shares issued. Post IPO the promoter’s shareholding will come down to 69.28%
The book-running lead managers of the public offering are ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd. And the registrar to the issue is KFin Technologies Ltd.
Utkarsh Small Finance Bank Overview
Utkarsh Small Finance Bank Ltd was incorporated in the year 2016 as an SFB (Small Finance Bank). It has an AUM of Rs. 5,000 crore and is one of the fastest-growing SFBs in India between the fiscal years FY 2019 and FY 2022.
Utkarsh Small Finance Bank Limited provides microfinance options to underserved or unserved segments, particularly in the states of Bihar and Uttar Pradesh.
Headquartered in Varanasi, Utkarsh SFB is among the leading SFBs (Small Finance Banks) in the country in terms of ROA. The bank had the highest return on equity among the SFBs in the country.
The bank is spread widely across states having its presence in 18 states and union territories. Utkarsh Small Finance Bank Limited has 528 banking outlets with the support of 8.729 employees.
Utkarsh Small Finance Bank Limited provides affordable banking services across India to fulfill the regular needs of the customers –
- Loans
- Accounts
- Deposits
- Investments
Utkarsh Small Finance Bank Ltd broadly caters to individual person’s banking needs and to businesses. Their services assist small businesses in their financial needs and offer them goal-oriented solutions. The bank offers accounts and deposits, cards, insurance and investments, and loans.
The bank offers loans up to Rs. 50 crores with a maximum tenure of up to 30 years. The SBF offers loans to eligible salaried and self-employed individuals too.
If you are a salaried person, you may like to read how much salary should you invest for a better monthly income return.
Utkarsh Small Finance Bank IPO Details
| Particulars | Details |
| IPO Opening date | 12 July 2023 |
| IPO Closing date | 14 July 2023 |
| IPO Price | Rs. 23 to Rs. 25 |
| Lot size | 600 shares |
| Issue size | Rs. 500 Cr |
| No. of shares issued | 200,000,000 |
| Listing on | BSE and NSE |
You need to open a demat account for IPO investments. If you don’t have a demat account, you can check the list of free demat accounts with zero AMC charges.
Utkarsh Small Finance Bank IPO Timetable
| Particulars | Details |
| IPO Opening date | 12 July 2023 |
| IPO Closing date | 14 July 2023 |
| Basis of Allotment date | 19 July 2023 |
| Credit of Share | 21 July 2023 |
| Listing date | 24 July 2023 |
You can also check the list of upcoming IPO 2023-24.
Utkarsh Small Finance Bank GMP
Grey Market Price (GMP) information is available approximately 4-5 days before the IPO opens and persists until the listing date.
For Utkarsh Small Finance Bank Ltd IPO, we have already obtained GMP data for the past 3 days, which should provide a reasonable indication of price upon listing.
GMP serves as an effective reflection of the true narrative surrounding a stock. But you need to take precautions because GMP is not an official price and only an indicative value.
Below is a brief summary of the GMP for Utkarsh Small Finance Bank Ltd for the last 4 days obtained from 5Paisa.
| Date | GMP |
| 11 July 2023 | Rs. 15 |
| 10 July 2023 | Rs. 14 |
| 09 July 2023 | Rs. 16 |
| 08 July 2023 | Rs. 15 |
Utkarsh Small Finance Bank Subscription Data
| Date | QIB | NII | Retail | Employee | Total |
| Day – 1 July 12, 2023 | 0.04% | 8.25% | 13.75% | 2.73% | 4.73% |
| Day – 2 July 13, 2023 | 3.88% | 27.72% | 36.66% | 8.48% | 16.20% |
| Day – 3 July 14, 2023 | 124.85% | 81.64% | 72.11% | 16.58% | 101.91% |
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Promoter Details
Utkarsh CoreInvest Limited (formerly known as Utkarsh Micro Finance Limited) is the sole Promoter of Utkarsh Small Finance Bank.
The promoter, along with its nominees, holds an aggregate of 759,272,222 Equity Shares, comprising 84.75% of the pre-Issue issued, subscribed and paid-up Equity Share capital of the Bank
Company Financials
Key financials of Utkarsh Small Finance Bank Ltd for the last 3 completed financial years is under. These include the fiscal years FY23, FY22 and FY21.
| Details | FY- 2023 | FY- 2023 | FY- 2021 |
| Total Deposits | Rs. 13710 cr | Rs. 10074 cr | Rs. 7507 cr |
| Deposits growth | 43.41% | 34.19% | 36.09% |
| Net Profit | Rs. 404.5 cr | Rs. 61.4 cr | Rs. 111.8 cr |
| Net NPA | 0.39% | 2.31% | 1.33% |
| Networth | Rs. 2000.3 cr | Rs. 1572.3 cr | Rs. 1368.3 cr |
| Return on avg equity (%) | 22.84% | 4.14% | 9.99% |
Utkarsh Small Finance Bank Peer Comparison
Utkarsh Small Finance Bank Limited peer comparison with similar listed entities. (Consolidated) (As on March 30, 2023)
| Bank | EPS Basic | EPS Diluted | NAV | P/E | RoNW |
| Utkarsh Small Finance Bank Limited | 4.52 | 4.51 | 22.33 | – | 20.22 |
| Equitas Small Finance Bank | 4.71 | 4.67 | 46.44 | 19.61 | 11.12 |
| Ujjivan Small Finance Bank Limited | 5.88 | 5.87 | 20.25 | 6.93 | 27.79 |
| Credit Access Grameen Limited | 52.04 | 51.82 | 326.89 | 24.13 | 16.18 |
| Spandana Sphoorty Financial Limited | 1.74 | 1.74 | 436.58 | 403.33 | 0.40 |
Objects of the Issue
Utkarsh Small Financial Bank proposes to utilize the Net Proceeds from the Issue towards augmenting its Tier–1 capital base to meet its future capital requirements.
Further, the proceeds from the Issue will also be used towards meeting the expenses in relation to the Issue
Its tier-1 capital base was Rs. 1,844.82 crore, or 18.25 percent, as of March 2023. Well above the stipulated RBI norms.
Tentative Issue size
Rs. 500 crores.
You can also check the detailed step-by-step guide on how to invest in IPOs in India.
Utkarsh Small Finance Bank Limited IPO Is Worth?
Utkarsh Small Finance Bank has a sound understanding of the microfinance segment. They have a presence in rural and semi-urban areas. The customer base of Utkarsh Small Finance Bank Limited amounted to approximately 2.74 million individuals, encompassing both credit and deposit customers.
A significant portion of their clientele originates from semi-urban and rural regions, specifically from Bihar, Uttar Pradesh, and Jharkhand. These three states collectively account for 41.91%, 27.32%, and .74% of the overall gross loan portfolio, respectively
The bank has a growing deposit base with a focus on retail deposits. Add to it they have a diversified distribution network with significant cross-selling opportunities.
