Utkarsh IPO: Day 1 subscription fully filled; retail portion oversubscribed 3x

EMS IPO: 23x subscription on day 3, retail segment 22.6x booked

Utkarsh Small Finance Bank’s IPO Witnesses Strong Day 1 Subscription; Retail Portion Oversubscribed 3 Times

Utkarsh Small Finance Bank Ltd’s initial public offering (IPO) garnered significant investor interest on its first day of subscription. As of now, the IPO has been subscribed 1.02 times, with the subscription period running from Wednesday, July 12, to Friday, July 14.

Retail investors showed remarkable enthusiasm for the IPO, with the allocated portion for them being fully subscribed within the first 30 minutes of the offering’s launch. Non-Institutional Investors (NIIs) and employees also displayed a positive response to the IPO.

The retail investors’ portion witnessed a subscription of 3.79 times, while the NIIs’ portion was subscribed 1.24 times. Employees, too, participated actively, with their portion experiencing a subscription rate of 46%. Some subscriptions were also received for the portion designated for qualified institutional buyers (QIBs).

According to data from the BSE at 12:06 IST, Utkarsh Small Finance Bank has received bids for 1,252,632,000 shares against the total of 1,205,434,477 shares on offer.

The retail investors’ portion received bids for 833,832,000 shares, surpassing the 215,217,739 shares allocated for this segment.

For the employees’ portion, bids were received for 10,176,600 shares against the 21,739,913 shares on offer.

Non-institutional investors’ bids amounted to 408,036,600 shares, exceeding the 322,826,608 shares on offer for this segment.

The QIBs’ portion attracted bids for 58,800 shares out of the 645,652,217 shares available for this segment.

The IPO price band has been set at ₹23 to ₹25 per equity share.

On July 11, Utkarsh Small Finance Bank successfully raised ₹222.75 crore from 20 anchor investors. The allocation of 89.1 million equity shares to anchor investors, priced at ₹25 per share, was finalized, as reported in the company’s exchange filing. Notable anchor investors included Aditya Birla Sun Life Mutual Fund (MF), Edelweiss MF, ICICI Prudential MF, Kotak Mahindra MF, Goldman Sachs, and the Massachusetts Institute of Technology Basic Retirement Plan Trust.

Utkarsh Small Finance Bank’s IPO solely comprises a fresh issue of equity shares, aggregating up to ₹500 crore, with no offer for sale (OFS) component, as stated in the red herring prospectus (RHP). Each equity share holds a face value of ₹10.

The proceeds from the IPO will be utilized to strengthen the bank’s tier I capital base and fulfill its future capital requirements. As of March 2023, the bank’s tier-1 capital base stood at ₹1,844.82 crore or 18.25 percent.

ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers for the public offering, while KFin Technologies Ltd is serving as the registrar to the issue.

About Utkarsh Small Finance Bank:

Established in 2016, Utkarsh Small Finance Bank started its operations in 2017. The bank offers a variety of deposit products, which comprise savings accounts, salary accounts, current accounts, recurring and fixed deposits, as well as locker facilities.

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