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The ₹500-crore IPO of Utkarsh Small Finance Bank witnessed a strong interest on Day 1 of the issue opening for subscription. At the end of Wednesday, the issue was subscribed 4.73 times.
The SFB has fixed ₹23-25 as the price band. The issue will close on July 14. Minimum bid lot is 600 equity shares.
The IPO received bids for 57.07 crore shares against 12.05 crore shares on offer, per to NSE data.
While up to 75 per cent of the issue has been reserved for QIBs, 15 per cent for non-institutional investors and the balance 10 per cent for retail individual investors.
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While the portion reserved for retail individual investors was subscribed 13.75 times, the non-institutional investors portion received bids for 8.25 times. The quota allocated for Qualified Institutional Buyers (QIBs) was subscribed 4 per cent.
Anchor Investors
On Tuesday, Utkarsh Small Finance Bank has raised ₹222.75 crore from anchor investors as part of the IPO process.
The board of directors of the bank, in consultation with ICICI Securities and Kotak Mahindra Capital Company (Book Running Lead Managers), has finalised allocation of 8.91 crore shares to anchor investors at ₹25 per share.
SBI Mutual Fund, ICICI Prudential, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Goldman Sachs Funds, SBI Life Insurance Company, Edelweiss Trusteeship, Founders Collective Fund, AG Dynamics Funds, etc. received the shares.
Entirely fresh issue
The IPO is entirely a fresh issue of shares.
The IPO proceeds will be used to expand the bank’s business over the next two years in order to become a multi-product bank.
According to Utkarsh Small Finance Bank’s MD and CEO Govind Singh, following the IPO, the bank’s capital adequacy ratio is expected to increase by 2-3 per cent from the current level of 20.6 per cent
The Varanasi-based SFB has operations across 26 States and Union Territories with 830 outlets and 15,424 employees. While 27.4 per cent of outlets are in unbanked rural centres, it has 36 lakh customers as of March 2023.
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