Utkarsh Small Finance Bank IPO opens tomorrow: 10 key things to know
Utkarsh Small Finance Bank IPO to accept subscriptions this week, with anchor investor bidding today. The bank aims to raise ₹500 crore through the IPO. IPO opens on July 12, price band set at ₹23-25 per share. Shares are to be listed on BSE and NSE on July 24.
Utkarsh Small Finance Bank IPO will begin accepting subscriptions this week. The anchor investor bidding is scheduled for today.
Having a presence across all of India, Utkarsh Small Finance Bank is one of the top small finance institutions. The bank is promoted by Utkarsh CoreInvest Ltd, which started operating as an NBFC in Fiscal 2010 and concentrated on offering microloans to underserved and unserved areas, primarily in the states of Uttar Pradesh and Bihar.
The lender had previously submitted a draft red herring prospectus (DRHP) in July 2021 in order to raise ₹1,350 crore, which would have come from a new issue for ₹750 crore and an offer for sale (OFS) by its the owner Utkarsh Coreinvest for ₹600 crore.
However, it submitted amended draft papers for the IPO with SEBI in August 2022 and reduced the issue size by 63 percent to collect ₹500 crore through the IPO. Initially, the lender intended to raise ₹1,350 crore through the IPO.
Here are the 10 key things to know about Utkarsh Small Finance Bank IPO.
Utkarsh Small Finance Bank IPO Dates: The IPO opens on Wednesday, July 12, and closes on Friday, July 14.
Anchor Investors: The anchor investors' auction will begin on Tuesday, July 11.
Price Band: The price range for the proposed initial public offering has been set by the company at ₹23 to ₹25 per equity share.
Issue Details and Size: Utkarsh Small Finance Bank IPO is entirely a fresh issue of equity shares aggregating up to ₹500 crore with no offer for sale (OFS) component, according to the red herring prospectus (RHP). The face value of each equity share is ₹10.
Lot Size: The minimum bid lot is 600 equity shares and in multiples of 600 equity shares.
Allotment and Listing: The basis of allotment of shares will be finalised on Wednesday, July 19 and the company will initiate refunds on Thursday, July 20, while the shares will be credited to the demat account of allottees on Friday, July 21. Utkarsh Small Finance Bank shares are likely to be listed on BSE and NSE on Monday, July 24.
Lead Manager and Registrar: The book running lead managers of the public offering are ICICI Securities Ltd, and Kotak Mahindra Capital Company Ltd, whereas the registrar to the issue is KFin Technologies Ltd.
Promoter Shareholding: The sole promoter of the bank is Utkarsh CoreInvest Limited, formerly known as Utkarsh Micro Finance Limited. The promoter and its nominees collectively held 759,272,222 equity shares as of the date of the Red Herring Prospectus, or 84.75% of the pre-Issue issued.
IPO Objective: To improve its bank's tier I capital base and meet future capital needs, the issue's proceeds will be put to use. Its tier-1 capital base was ₹1,844.82 crore, or 18.25 percent, as of March 2023.
IPO Reservation: The company has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors.
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