Utkarsh Small Finance Bank IPO to open on July 12; check details
₹500 crore initial public offering (IPO) of the Varanasi-based Utkarsh Small Finance Bank will open for subscription on Wednesday, July 12 and end on Friday, July 14. On Tuesday, July 11, the anchor investors' auction will begin. On Wednesday, July 19, the allotment will take place and on Thursday, July 20, the shares will be credited to the allottees' demat accounts.
On Monday, July 24, the stock is scheduled to begin trading on exchanges. To improve its bank's tier I capital base and meet future capital needs, the issue's proceeds will be put to use. Its tier-1 capital base was ₹1,844.82 crore, or 18.25 percent, as of March 2023.
The book running lead managers of the public offering are ICICI Securities Ltd, and Kotak Mahindra Capital Company Ltd, whereas the registrar to the issue is KFin Technologies Ltd. The lender had previously submitted a draft red herring prospectus (DRHP) in July 2021 in order to raise ₹1,350 crore, which would have come from a new issue for ₹750 crore and an offer for sale (OFS) by its the owner Utkarsh Coreinvest for ₹600 crore. However, it submitted amended draft papers for the IPO with SEBI in August 2022 and reduced the issue size by 63 percent to collect ₹500 crore through the IPO. Initially, the lender intended to raise ₹1,350 crore through the IPO.
Utkarsh Small Finance Bank was founded in 2016, and it started operating in 2017. It offers an array of deposit products, such as savings accounts, salary accounts, current accounts, recurring and fixed deposits, and locker facilities. As of March 2023, it had operations in 26 states and union territories, employed 15,424 people at 830 banking locations, and served 3.59 million customers, the majority of whom lived in rural and semi-rural
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