Utkarsh Small Finance Bank IPO Review | Utkarsh Small Finance Bank IPO – Dates, GMP, Financials

Utkarsh Small Finance Bank IPO is set to launch on July 12, 2023. The bank has experienced substantial growth in loans given out between 2019 and 2023, making it the third fastest-growing bank compared to its peers. The IPO price band for Utkarsh Small Finance Bank is set at Rs 23 to Rs 25 per share, which is considered relatively low.

About Utkarsh Small Finance Bank

Utkarsh Small Finance Bank started as a microfinance-focused non-banking financial company in 2010, catering to underserved areas in Uttar Pradesh and Bihar. It expanded its operations to become a small finance bank in 2016. As of March 2023, the bank operates across 26 states and union territories, with a strong presence in rural and semi-urban areas. It offers a range of financial products and services tailored to different customer segments, including loans, savings accounts, and other banking services.

Utkarsh Small Finance Bank IPO Details 

IPO Opening Date 12-Jul-23
IPO Closing Date 14-Jul-23
IPO Listing Date 24-Jul-23
Issue Type Book Built Issue IPO
Face Value Rs 10 per equity share
IPO Price band Rs 23 to Rs 25 per equity share
Lot Size 600 Shares
Min Order Quantity 600 Shares
Listing at BSE and NSE
Total Issue Size Rs. 500 Crores
QIB shares offered Not less than 75% of the offer
NII/HNI shares offered Not more than 15% of the offer
Retail shares offered Not more than 10% of the offer

Utkarsh Small Finance Bank Limited Financials

In terms of financial performance, Utkarsh Small Finance Bank has shown steady growth in total assets and revenue. Profit after tax experienced a temporary decline but recovered and achieved higher profitability in the last fiscal year.


Period Ended Total Assets Total Revenue Profit After Tax Net Worth Reserves and Surplus Total Borrowing
31-Mar-20 9,404.32 1,406.18 186.74 1,019.50 260.23 2,675.04
31-Mar-21 12,137.91 1,705.84 111.82 1,368.35 520.02 2,607.83
31-Mar-22 15,063.77 2,033.65 61.46 1,572.30 676.78 2,571.94
31-Mar-23 19,117.54 2,804.29 404.50 2,000.32 1,104.42 2,349.48

 Objective of the Utkarsh Small Finance Bank IPO?

The IPO’s objective is to augment the bank’s Tier-1 capital base to meet future capital requirements. The net proceeds from the IPO will also be utilized for meeting expenses. After listing, the promoter holding in the bank will reduce from 84.75% to 69.28%.

Utkarsh Small Finance Bank’s IPO Price Valuation

In terms of valuation, the IPO price band indicates a price-to-earnings (P/E) ratio of approximately 6x to 9x based on the company’s earnings per share (EPS). Compared to its peers, the IPO is reasonably priced. The grey market premium for the IPO is reported to be between Rs 4 to Rs 5 per share.

Utkarsh Small Finance Bank IPO Lot Size

The Utkarsh Small Finance Bank IPO lot size is 600 shares.

Application Lots Shares Amount
Retail (Min) 1 600 ₹15,000
Retail (Max) 13 7800 ₹195,000
S-HNI (Min) 14 8,400 ₹210,000
S-HNI (Max) 66 39,600 ₹990,000
B-HNI (Min) 67 40,200 ₹1,005,000

Positive Factors to invest in Utkarsh Small Finance Bank IPO

Positive factors for investing in Utkarsh Small Finance Bank IPO include its strong understanding of the microfinance segment, presence in rural and semi-urban areas, and diversification of its product portfolio. The bank has a robust growth in deposits, a well-established distribution network, and has shown strong revenue growth over the years.

Risk or Negative Factors in Utkarsh Small Finance Bank IPO

However, there are also some risk factors to consider. The bank’s margins have declined in the past but have shown improvement. The bank is subject to regulatory inspections and non-compliance could impact its business. A significant portion of the bank’s advances is concentrated in Bihar and Uttar Pradesh, which poses potential risks. The bank also faces risks related to customer loss, bulk deposits, and certain regulatory actions.

What are Utkarsh Small Finance Bank IPO Dates?

IPO Opens on Wednesday, 12 July 2023
IPO Closes on Friday, 14 July 2023
Basis of Allotment Wednesday, 19 July 2023
Initiation of Refunds Thursday, 20 July 2023
Credit of Shares to Demat Friday, 21 July 2023
Listing Date Monday, 24 July 2023
Cut-off time for UPI mandate confirmation 5 PM on Jul 14, 2023

Utkarsh Small Finance Bank IPO Review – Conclusion

In conclusion, the Utkarsh Small Finance Bank IPO presents both positive and negative factors for investors to consider. It is suitable for high-risk investors who understand the associated risks and have a medium to long-term investment perspective

Utkarsh Small Finance Bank IPO

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