IPO screener: Utkarsh Small Finance Bank issue opens today

Utkarsh Small Finance Bank’s IPO of Rs 500 crore opened to public today at a price of $23-25. The release will close on July 14th.

While 75 percent of the issuance will be available for allocation to Qatar Islamic Bank, up to 15 percent is earmarked for non-institutional investors and the remaining 10 percent for retail investors. The minimum order is 600 shares of stock.

The main investors

On Tuesday, Utkarsh Small Finance Bank raised Rs 222.75 crore from anchor investors as part of its IPO.

The Bank’s Board of Directors, in consultation with ICICI Securities Limited and Kotak Mahindra Capital Company Limited (Directors by Book Management), has finalized an allotment of 8.91 crore shares to anchor the investors at a price of $25 per share.

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Investors participating in the lead book include the SBI Collaborative Fund, ICICI Prudential, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Goldman Sachs Funds, SBI Life Insurance Company, Edelweiss Trusteeship, Founders Collective Fund and AG Dynamics Funds.

funds interest

An IPO is a new issuance of shares. The proceeds from the IPO will be used to expand the bank’s business over the next two years and help it become a multi-product bank,

According to the Managing Director and CEO of Utkarsh Small Finance Bank, 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%.

The Varanasi-based 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.