Utkarsh Small Finance Bank Ltd

About Utkarsh Small Finance Bank Ltd IPO

Headquartered in Varanasi, Utkarsh Small Finance Bank (SFB) is among the leading SFBs in the country. It focuses on providing microfinance to unserved and underserved segments. In October 2015, the promoter, Utkarsh CoreInvest, was granted in-principle approval from RBI to establish a Small Finance Bank. Subsequently, Utkarsh SFB was incorporated as a wholly-owned subsidiary in April 2016 and commenced its operations in January 2017. 

The company has a presence in 22 states and four union territories with 830 banking outlets as on 31 March 2023. Of which, over 27% of banking outlets are located in unbanked rural centres. It has a diversified product mix, with the top seven states accounting for 88% of the loan portfolio and 77% of total deposits.

Utkarsh Small Finance Bank IPO will be a fresh issue aggregating up to ₹500 crore. The money raised through the fresh issue of the Utkarsh Small Finance Bank IPO will be utilised towards augmenting Tier–1 capital base to meet its future capital requirements. Tier–1 capital measures a bank's financial strength and stability. 

Here are some key details about the Utkarsh Small Finance Bank IPO: 

Financial snapshot

Here’s a quick look at Utkarsh Small Finance Bank Ltd IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Banking operations are mainly focused in rural and semi-urban areas that offer growth potential. The share of the rural segment in banking credit is just 8% of the total credit, despite contributing 47% to India’s GDP. 
2. The gross loan portfolio grew at a CAGR of over 18% to 13,957 crore between FY21 to FY23. In the same period, net interest income increased by 22.1% to ₹1,529 crore. 
3. Recorded 31.6% growth in assets under management (AUM) between FY19 to FY22.
4. Consistent increase in deposits from ₹7,507 crore in FY21 to ₹13,710 crore in FY23. Meanwhile, CASA to total deposits ratio improved from 17.6% to 20.8% during the same period. 

Risks and threats

1. Along with growth in the loan portfolio, gross non-performing assets (NPAs) have also increased from 3.75% in FY21 to 6.10% in FY 22 but decreased subsequently to 3.23% as of March 31, 2023.
2. Bank is subject to stringent regulatory requirements, which, if not followed, will have adverse effects on the business and operations.
3. Volatility in interest rates or the inability to manage the interest rate risk will negatively affect the net interest margins of the bank.

Utkarsh Small Finance Bank Ltd IPO details

| Utkarsh Small Finance Bank Ltd IPO date 

The company has filed its Draft Red Herring Prospectus with the market regulator SEBI. The offer document filed by the company with the SEBI mentions that the Utkarsh SFB IPO’s opening date – in other words, the Utkarsh SFB IPO launch date – will be 12th July 2023. The Utkarsh SFB IPO closing date is 14th July 2023. After this, investors will be updated about the allotment status on 19th July 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 21 July 2023. The Utkarsh SFB IPO listing date is 24 July 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| Utkarsh Small Finance Bank Ltd IPO Price Band

The IPO is a fresh issue. The Utkarsh SFB IPO price band has been set between ₹23 and ₹25 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Utkarsh SFB IPO listing price will be determined on 24th July 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Utkarsh Small Finance Bank Ltd IPO Lot size

The Utkarsh SFB IPO details have been declared. The Utkarsh SFB IPO lot size is set at 600 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Utkarsh SFB IPO issue size is approx. ₹500 crore. 

How to apply for the Utkarsh Small Finance Bank Ltd IPO?

If you are interested in this investment opportunity but unsure how to apply for the Utkarsh Small Finance Bank IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Utkarsh Small Finance Bank IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Utkarsh Small Finance Bank IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Utkarsh Small Finance Bank Ltd IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Utkarsh Small Finance Bank IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Utkarsh Small Finance Bank IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the Utkarsh Small Finance Bank Ltd IPO

To apply for the Utkarsh Small Finance Bank IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Utkarsh Small Finance Bank Ltd IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  

You can apply for the Utkarsh Small Finance Bank IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.