Utkarsh Small Finance Bank has successfully raised Rs 223 crore from anchor investors prior to its initial share sale. In order to fund its operations the bank intends to generate Rs 500 crore through its IPO, which will be available for public subscription from July 12 to 14. Utkarsh is recognized for offering an extensive selection of deposit products and boasts a notable presence in rural and semi-urban regions.
Utkarsh Small Finance Bank announced on Tuesday that it had successfully garnered a staggering amount of Rs 223 crore from anchor investors prior to its impending initial share sale. The shares, valued at Rs 25 apiece, were allocated to a group of 20 funds, totaling an impressive 8.91 crore equity shares. This pricing also coincides with the upper limit of the price band, as specified in a circular available on the BSE website.
Noteworthy participants among the anchor investors include renowned entities like Goldman Sachs, Massachusetts Institute of Technology Basic Retirement Plan Trust, Aditya Birla Sun Life Mutual Fund (MF), Edelweiss MF, ICICI Prudential MF, and Kotak Mahindra MF.
Utkarsh is currently aiming to raise a substantial sum of Rs 500 crore through its upcoming IPO, which solely consists of a fresh issue of equity shares. The IPO is set to open for public subscription from July 12 to July 14, with interested investors required to bid for a minimum of 600 equity shares, subsequently in multiples of 600 shares.
The intended utilization of the funds generated from this issue is to reinforce the bank’s tier 1 capital base, ensuring preparedness for future capital requirements.
Established in 2017, Utkarsh has already expanded its operations across 26 states and union territories, operating an extensive network of 830 banking outlets. Its customer base, which primarily resides in rural and semi-urban areas, notably in Bihar and Uttar Pradesh, boasts a substantial 3.6 million individuals. The bank’s range of product offerings encompasses a diverse array of deposit options, such as savings accounts, salary accounts, current accounts, recurring and fixed deposits, as well as locker facilities.
Impressively, Utkarsh has witnessed significant growth in its financial metrics. As of March 31, 2023, its gross loan portfolio reached an impressive Rs 13,957.11 crore, marking a significant surge from the figure of Rs 8,415.66 crore recorded on March 31, 2021. Furthermore, disbursements during the fiscal year 2023 escalated to Rs 12,442.89 crore, a notable increase from the previous fiscal year’s figure of Rs 5,914.01 crore. In terms of deposits, Utkarsh observed a surge to Rs 13,710.14 crore from Rs 7,507.57 crore during the corresponding period.
Upon the successful completion of its IPO, Utkarsh will join the ranks of other small finance banks, including AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, and Suryoday Small Finance Bank, by listing on the stock exchanges.
ICICI Securities and Kotak Mahindra Capital Company have been appointed as the book-running lead managers for the issue, further emphasizing the significance and potential of Utkarsh’s IPO.
