Utkarsh SFB IPO subscription status: Issue sails through within 2 hours; retail portion booked over 3.5x

economictimes.indiatimes.com:

According to the data from BSE, the investors made bids for 12,27,66,000 equity shares or 1.02 times compared to 12,05,43,477 equity shares on offer for subscription by 12.06 pm. The quota for retail bidders was subscribed 3.79 times, whereas the allocation for non-institutional investors fetched 1.24 times bids. But the portion for qualified institutional bidders was not off the mark yet.

The company is selling its shares in the range of Rs 23-25 apiece between July 12-14, which is entirely a fresh issue of shares of Rs 500 crore. Ahead of the subscription, the company's shares were commanding a healthy premium of Rs 14 in the unlisted market. About 75% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII) and the rest 10% for retail investors, who can bid for a minimum of 600 shares in one lot and in multiples thereafter.

Incorporated in 2016, Utkarsh commenced operations in 2017, and its product suite includes a range of deposit products, including saving accounts, salary accounts, current accounts, recurring and fixed deposits and locker facilities. The bank recorded the third-fastest gross loan portfolio growth between fiscal 2019 and fiscal 2023 among its peers, with a gross loan portfolio of more than Rs 6000 crore. For the year ended March 2023, the company recorded a total income of Rs 2,804 crore, while net profit for the same period stood at Rs 404 crore.

While the topline has remained healthy, with a reported CAGR of 26% over FY21-23, bottomline growth was muted in FY22 following the general market trends after the COVID-19 pandemic. Its net NPAs (non-performing assets) were at 1.33%, 2.31% and 0.39% for FY21, FY22 and FY23, respectively. At the upper