Utkarsh Small Finance Bank Limited's initial public offering will open for subscription on Wednesday, and close on Jul 14, according to the red herring prospectus. Anchor investors can submit the bids on Tuesday. The bank has fixed the price band at Rs 23-25 per share.
The Varanasi-based bank aims to raise up to Rs 5 crore via fresh issue of shares. The bidding will begin on July 11.
The small finance bank's IPO includes a reservation up to 1 per cent of the issue size for its employees that comes up to 20 lakh shares of Rs 5 crore. The amount raise will be utilised towards augmenting its Tier-1 capital base to meet future capital requirements, besides issue expenses.
Investors looking to bid can book a minimum of 600 equity shares and in multiple of 600 shares. This means that any investor can apply for shares worth Rs 15,000 and they can maximum invest Rs 1,95 lakh for 13 lots at an upper brand.
75 per cent of the shares are reserved for qualified institutional buyers, 15 per cent for high networth individuals and the remaining 10 per cent for retail investors.
The small finance bank recorded the third fastest gross loan portfolio growth between FY19 and FY23 among SFBs with a gross loan portfolio of more than Rs 6,000 crore as per CRISIL report.
Promoter Utkarsh CoreInvest incorporated Utkarsh Small Finance Bank as a wholly-owned subsidiary in April 2016 after receiving in-principle approval from the Reserve Bank of India in October 2015 to establish a small finance bank.
Utkarsh Small Finance Bank with operations across 26 states and Union Territories and a total of 830 banking outlets and 15,424 employees as of March 2023. The bank had a 3.59 million customers base with a major focus in rural and semi-urban areas like Bihar and Uttar Pradesh. From the customers 30.88 per cent of total gross loan portfolio are from Bihar whereas 25.98 per cent from Uttar Pradesh.
