Utkarsh Small Finance Bank jumps 92% on listing day

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Shares of Utkarsh Small Finance Bank made a strong debut on the stock exchanges on Friday by gaining nearly 92 percent, ignoring the turbulent market situation, on the day of listing.

For the IPO price of $25, the stock closed at $47.94 on the Bahrain Bourse on Friday; It opened at INR 39.95 and closed at the high. On the NSE, it closed at $48, after opening at $40.

The IPO received an overwhelming response from all classes of investors – it received bids for 1,228 crore shares against the 12.05 crore shares offered. For a size of Rs 500 crores, the IPO generated interest of Rs 30,000 crores.

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Utkarsh SFB made a strong debut, said Anubhuti Mishra, Equity Research Analyst, Swastika Investmart Ltd, which is listed at $40 per share – a 60 per cent premium to the upper end of the price range of ₹25. The strong listing came in in line with expectations. “Utkarsh SFB is well positioned to benefit from the growth of the SFB sector, with a strong focus on underprivileged segments of the population. After listing at this level, we suggest booking this gain; However, aggressive investors can choose to buy during any subsequent decline.

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.

SBI Investment 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. are major investors.

The IPO was an entirely new issue of shares and the proceeds will be used to expand the bank’s business over the next two years in order to become a multi-product bank.