Utkarsh Small Finance Bank Lists At 60% Premium, Up 92% Against Issue Price

Utkarsh Small Finance Bank Ltd listed on the stock exchanges at a premium on Friday. On the National Stock Exchange (NSE), the Utkarsh Small Finance Bank stock was listed at Rs 40 per share, 60 per cent above the issue price. On the Bombay Stock Exchange (BSE), the stock made its debut at Rs 39.95 per share.

The Utkarsh SFB public issue opened for subscription on Wednesday, 12 July and closed on Friday, 14 July. The company fixed the price band at Rs 23 to Rs 25 per equity share for the proposed initial public offering (IPO).

In the intraday session, Utkarsh Small Finance Bank touched an intraday high of Rs 47.94 per share, up 20 per cent from its listing price, and 91.76 per cent higher from its issue price.

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The strong listing came on the back of enthusiastic participation from investors, with the IPO receiving an oversubscription of nearly 102 times at closing.

The qualified institutional buyers (QIBs) portion was subscribed 124.8 times, non-institutional investors 81.6 times, and the retail investor quota was subscribed 72.1 times.

On 11 July, the bank raised Rs 222.75 crore from 20 anchor investors. The allocation of 8.91 crore equity shares to anchor investors, at an upper price band of Rs 25 per share, was finalised, the company said in its exchange filing.

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ICICI Prudential Mutual Fund (MF), Edelweiss MF, Aditya Birla Sun Life MF, Goldman Sachs, Massachusetts Institute of Technology Basic Retirement Plan Trust, Kotak Mahindra MF, and others were among the anchor investors.

Utkarsh Small Finance Bank IPO is a fully fresh issue of equity shares aggregating up to Rs 500 crore with no offer for sale (OFS) component, according to the red herring prospectus (RHP). The face value of each equity share is Rs 10.

The proceeds will be used to improve the bank’s Tier 1 capital base and meet future capital requirements.

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The book running lead managers of the public offering are ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd. KFin Technologies Ltd is the registrar for the issue.

In fiscal year 2023, the company reported a total income of 2,804 crore, while net profit for the same period stood at Rs 404 crore.