Utkarsh Small Finance Bank IPO to open on July 12. 10 things to know about the public offer

economictimes.indiatimes.com:

1) What is the business overview of Utkarsh Small Finance Bank? 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. It also had the second highest provision coverage ratio among SFBs in fiscal 2023.

Its operations are focused in rural and semi-urban areas and as of March 2023, it had 3.59 million customers majorly located in rural and semi urban areas.2) What is the industry overview of Utkarsh Small Finance Bank? Unlike NBFCs, which expand horizontally with a special focus product, such as vehicle loan, microfinance loans or housing finance, SFBs can expand vertically and horizontally offering multiple loan products as well as deposit products. Loan portfolio CAGR of approximately 22% between fiscal 2023-fiscal 2025 is expected for SFBs.3) What is the size of the Utkarsh Small Finance Bank IPO? The IPO comprises fresh equity issues of up to Rs 500 crore.

There is no offer for sale (OFS segment).4) What is the price band for the Utkarsh Small Finance Bank IPO? The company has fixed the price band at Rs 23-25 per share for its public offer. Investors can bid for a minimum of 600 shares and in multiples thereafter.5) What is the structure of the Utkarsh Small Finance Bank IPO? About 75% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII) and the rest 10% for retail investors6) How is the financial performance of Utkarsh Small Finance Bank? For the year ending March 2023, the company had recorded total income of 2,804 crore, while net profit for the same period stood at Rs 404 crore.7)