Utkarsh SFB IPO subscribed 102 times; gets bids worth ₹30,000 crore
With a strong response from all classes of investors, the Rs 500 crore IPO of Utkarsh Small Finance Bank witnessed overwhelming buy-in. The public issue of Utkarsh SFB, which came out with a price range of ₹23-25, was subscribed 101.91 times on the last day of issue closing.
The IPO received bids for 1,228 crore shares against 12.05 crore shares offered, as per data available with the exchanges.
For a size of Rs 500 crores, the IPO generated interest of Rs 30,000 crores.
While the portion reserved for retail investors was oversubscribed 72.10 times, the non-institutional investors portion received bids 81.64 times and qualified institutional buyers 124.85 times. The employee share was subscribed 16.58 times.
The main investors
On Tuesday, based in Varanasi Utkarsh Small Finance Bank has raised Rs 222.75 crore from anchor investors as part of the IPO.
The Bank’s Board of Directors, in consultation with ICICI Securities and Kotak Mahindra Capital Company (Directors of Management Book), has completed an allotment of ₹8.91 crore shares to established investors at ₹25 per share.
Receive 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.
An IPO is a new issuance of shares. The proceeds of the underwriting will be used to expand the bank’s business over the next two years in order to become a multi-product bank.
According to the Managing Director and CEO of Utkarsh SFB, Govind Singh, after the IPO, the bank’s capital adequacy ratio is expected to increase by 2-3% from the current level of 20.6%.
Utkarshi SFB has operations in 26 states and union territories with 830 outlets and 15,424 employees. While 27.4 per cent of the outlets are in non-bank rural centres, they have 36 customers as of March 2023.
Recently, IPOs generate a lot of interest from investors. general issues such as ideaForge Tech (106 times), Cyient DLM (71.35 times), Senco Gold (77.25 times) and IKIO Lighting (67.75 times) have attracted not only wealthy individuals, but also retail investors.
However, last week PKI was forced to withdraw its IPO, because it couldn’t fully subscribe – only 65 percent. HMA Agro Industries just managed on the last day; The issue was 1.62 times oversubscribed, thanks mainly to the ultra-high net worth individuals and Qatar Islamic Bank.