IPO Screener: Utkarsh SFB listing today

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Shares of Utkarsh Small Finance Bank will be listed on stock exchanges on Friday. The company has set the IPO price at Rs 25, at the upper end of the price range. the The IPO saw an overwhelming response fBy subscription 101.91 times.

The IPO received bids for 1,228 crore shares against 12.05 crore shares offered, as per data available with the exchanges.

The expected listing price of Utkarsh Small Finance Bank is around Rs 40, which is about 60 per cent higher than the IPO price of Rs 25 per share. This is based on the current gray market premium, which is supported by the strong response this IPO has received, said Anubhuti Mishra, equity research analyst at Swastika Investmart.

For a size of Rs 500 crores, the IPO generated interest of Rs 30,000 crores.

While the portion reserved for individual 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, Varanasi-based bank Utkarsh Small Finance raised Rs 222.75 crore from anchor investors as part of its IPO.

The Bank’s Board of Directors, in consultation with ICICI Securities and Kotak Mahindra Capital Company (managing directors), 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.

The IPO was a new issue 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.