Utkarsh Small Finance Bank IPO to open from today, 7 things to know about this IPO before investing

IPO News: Utkarsh Small Finance Bank is coming up with its Initial Public Offer (IPO) on 12th July. Investors will be able to invest in it from July 12 to 14. The company’s shares are expected to be listed on both the exchanges. If you are also thinking of investing in this IPO, you should know these 7 things before investing.

What is the business of Utkarsh Small Finance Bank?

Utkarsh Small Finance Bank Established in 2016, Utkarsh started operations in 2017. It has the second highest provision coverage ratio among small finance banks in FY23. Small Finance Bank’s operations are concentrated in rural and semi-urban areas and as of March 2023, its 3.59 million customers are mainly located in rural and semi-urban areas.

The promoter and its nominee collectively as on the date of submission of Red Herring Prospectus. 759,272,222 equity shares were held, which is 84.75 percent of the pre-issue issued. As of March 2023, the bank’s operations were spread across 26 states and union territories. The bank says it has 3.6 million customers mainly spread across rural and urban areas of Bihar and Uttar Pradesh. It ranks second among SFBs with highest AUM growth in FY2019 and SFB (Small Finance Bank) with AUM (Assets Under Management) of over 5,000 crores in FY22.

Utkarsh Small Finance Bank >What is the size of the IPO?

Utkarsh Small Finance Bank IPO Rs. 500 crore equity issue. There is no OFS clause for sale.

What is the price range for Utkarsh Small Finance Bank IPO?

The company for its public offer per share at Rs. A price band of 23-25 ​​has been fixed. Investors can bid for a minimum of 600 shares and thereafter in multiples.

What is the Structure of Utkarsh Small Finance Bank IPO ?

About 75% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 10% for retail investors. p>

How is the financial performance of Utkarsh Small Finance Bank?

For the year ended March 2023, the company has a total of Rs. 2,804 crore, while the net profit for the same period was Rs. 404 crore.

What are the objectives of Utkarsh Small Finance Bank IPO? /p>

Proceeds from the fresh issue will be used to augment the lender’s Tier 1 capital base to meet future capital requirements.

Utkarsh Small Finance Bank’s current GMP What?

According to market analysts, Utkarsh SFB’s current GMP per share in the unlisted market is Rs. 14 is around.

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