Utkarsh Small Finance Bank IPO GMP, Subscription, Price

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

IPO Opening date12 July 2023
IPO Closing date14 July 2023
IPO PriceRs. 23 to Rs. 25
Lot size600 shares
Issue sizeRs. 500 Cr
No. of shares issued200,000,000
Listing onBSE 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

IPO Opening date12 July 2023
IPO Closing date14 July 2023
Basis of Allotment date19 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.

11 July 2023Rs. 15
10 July 2023Rs. 14
09 July 2023Rs. 16
08 July 2023Rs. 15

Utkarsh Small Finance Bank Subscription Data

Day – 1 July 12, 20230.04%8.25%13.75%2.73%4.73%
Day – 2 July 13, 20233.88%27.72%36.66%8.48%16.20%
Day – 3 July 14, 2023124.85%81.64%72.11%16.58%101.91%

You would like to read – our research report on top 20 stock brokers in India

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.

DetailsFY- 2023FY- 2023FY- 2021
Total DepositsRs. 13710 crRs. 10074 crRs. 7507 cr
Deposits growth43.41%34.19%36.09%
Net Profit Rs. 404.5 crRs. 61.4 crRs. 111.8 cr
Net NPA0.39%2.31%1.33%
NetworthRs. 2000.3 crRs. 1572.3 crRs. 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)

BankEPS BasicEPS DilutedNAVP/ERoNW
Utkarsh Small Finance Bank Limited4.524.5122.3320.22
Equitas Small Finance Bank4.714.6746.4419.6111.12
Ujjivan Small Finance Bank Limited5.885.8720.256.9327.79
Credit Access Grameen Limited52.0451.82326.8924.1316.18
Spandana Sphoorty Financial Limited1.741.74436.58403.330.40

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.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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