Utkarsh Small Finance Bank IPO: Lender Utkarsh Small Finance Bank’s Rs 500-crore IPO opened for subscription today, 12 July and was fully subscribed 2 hours after the issue opened. The issue has been booked 1.36 times so far, with total bids of 16.41 crore shares. Qualified institutional buyers (QIBs) have bid for a minute part of their reserved portion. Retail investors oversubscribed 4.81 times. The NII portion was bid 1.84 times and employees subscribed 0.59 times.
About the IPO
Utkarsh Small Finance Bank (USFB) is set to go public with a fresh issue of 20 crore shares. Following the listing, Utkarsh CoreInvest, the bank’s promoter, will retain a 69.28% stake. The grey market premium for USFB shares surged by 64%, indicating a potential listing price of Rs 41 per share.
USFB, as a small finance bank, offers a range of asset products, including micro-banking loans, retail loans, wholesale lending, housing loans, commercial vehicle/construction equipment loans, and gold loans. The bank also provides savings accounts, current accounts, term/recurring deposit accounts, and non-credit offerings such as ATM-cum-debit cards, bill payment systems, distributed third-party point-of-sales terminals, mutual funds, and insurance products.
“USFB is in constant efforts to improve its business with deeper insights into customer trends, and develop customized products for its customer segments. It intends to further the growth through diversification of product offerings, customer segments and geography supported by technology, process and data analytics. With improvement in NIMs and NPAs in declining trend over the last three years, growth in earnings remains strong. On FY23 financials, the IPO is valued at 6.8x P/E and 1.1 times P/BV, we recommend SUBSCRIBE to this issue for the long term,” said Reliance Securities in a note.