Utkarsh Small Finance Bank Ltd

UTKARSHBNK

₹23-25

per share

Bidding Dates

12-14 Jul

Min. Investment

₹13,800.00

Lot Size

600 shares

Issue Size

₹500 Cr

IPO Timeline

Bidding starts

12 Jul ‘23

Bidding ends

14 Jul ‘23

Allotment finalisation*

19 Jul ‘23

Refund initiation*

20 Jul ‘23

Demat transfer

21 Jul ‘23

Listing

21 Jul ‘23

* Refund is a 7-10 days process. If you don’t get refund then please contact your bank.

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:

Company Name	Utkarsh Small Finance Bank Ltd	Company Type	Private
Company Established On	2016	Utkarsh Small Finance Bank Ltd IPO Opening Date	12 July 2023
Utkarsh Small Finance Bank Ltd IPO Closing Date	14 July 2023	Utkarsh Small Finance Bank Ltd IPO Allotment Status	19 July 2023
Credit of Shares to the Demat Account	21 July 2023	Utkarsh Small Finance Bank Ltd IPO Listing Date	24 July 2023
Utkarsh Small Finance Bank Ltd IPO Face Value	₹ 10 per share	Utkarsh Small Finance Bank Ltd IPO Lot Size	600 shares
Utkarsh Small Finance Bank Ltd IPO Issue Size	500 cr	Utkarsh Small Finance Bank Ltd IPO to be Listed on	BSE, NSE
Utkarsh Small Finance Bank Ltd IPO Price band	₹ 23 - ₹ 25 per share

Financial snapshot

Particulars	FY 21	FY 22	FY 23
Revenue	₹ 1705 crore	₹ 2033 crore	₹ 2804 crore
Net Profit	₹ 111 crore	₹ 61.4 crore	₹ 404 crore

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

Strengths and opportunities

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.
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.
Recorded 31.6% growth in assets under management (AUM) between FY19 to FY22.
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

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.
Bank is subject to stringent regulatory requirements, which, if not followed, will have adverse effects on the business and operations.
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:

Login to your Upstox account, using your six-digit PIN
After successfully logging in, click on ‘Discover’
On the Discover tab, you will find the ‘Invest in IPO’ section
Under the Invest in IPO section, look for the ‘Utkarsh Small Finance Bank IPO’ tab and click on it
Now fill in all the required information, like ‘bid price’ and ‘lot size’
Confirm and click on ‘Apply’
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:

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

Allotment Status

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:

Click here to visit the demat account opening page on the Upstox website.
Enter your phone number and other essential details to begin opening a demat account.
Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.
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.

IPO analysis

Registrar information

Name

KFin Technologies Private Limited

Phone number

+91 40 6716 2222

Email ID

utkarsh.ipo@kfintech.com

Red herring prospectus

View documents submitted by company in filing to understand more details about them.

FAQs

What is the pre apply date of Utkarsh Small Finance Bank IPO ?

Pre-applying for the Utkarsh SFB IPO means applying for this public issue before it goes live. Click here to pre-apply for the Utkarsh SFB IPO on Upstox.

When does pre-apply for the Utkarsh Small Finance Bank IPO open and how can you pay for it?

You can pre-apply for the Utkarsh SFB IPO from 11 July 2023. Once the IPO goes live, you will receive a UPI mandate. Accept this to block the IPO application amount and successfully place your bid.

How to apply for the Utkarsh Small Finance Bank IPO?

You can apply on Upstox’s website and app, once the Utkarsh SFB IPO opens for subscription.

When does the Utkarsh Small Finance Bank IPO open and close for the subscription?

The Utkarsh SFB IPO launch date is 12th July 2023. The Utkarsh SFB IPO will be open for subscription till 14th July 2023.

What’s the lot size and minimum investment needed for the Utkarsh Small Finance Bank IPO?

The Utkarsh SFB IPO lot size is 600 shares and the minimum investment required is ₹13,800.

What is the price band for the Utkarsh Small Finance Bank IPO?

The Utkarsh SFB IPO price band is ₹23 – ₹25 per share.

What’s the size of the Utkarsh Small Finance Bank IPO?

The size of the Utkarsh SFB IPO is approx. ₹500 crore.

How many bids can I place for the Utkarsh Small Finance Bank IPO?

You can place up to three bids for an application.

Can these bids be placed at different times during the IPO subscription period?

No, the bids have to be placed at one go. If you want to add an additional bid, then you would have to delete your application and re-apply.

When will Utkarsh Small Finance Bank shares be credited to your demat account?

If shares are allotted, then they will be credited to your demat account on 21th July 2023.

Which exchanges will Utkarsh Small Finance Bank shares list on?

Utkarsh Small Finance Bank shares will list on NSE and BSE

When will Utkarsh Small Finance Bank shares list on the exchanges?

Utkarsh Small Finance Bank shares’ listing date is 24th July 2023