Utkarsh Small Finance Bank IPO of Rs 500 Cr to Open for Subscription on July 12
Utkarsh Small Finance Bank, headquartered in Varanasi, is set to launch its initial public offering (IPO) worth Rs 500 crore. The subscription for the IPO will begin on July 12 and conclude on July 14. Prior to that, anchor investors will have the opportunity to bid starting from July 11.
The allotment of shares is anticipated to take place on July 19, with the credit of shares to demat accounts scheduled for July 20. The stock is projected to be listed on exchanges on July 24.
The funds raised from this IPO will be utilized to augment the bank’s tier I capital base, enabling it to meet its future capital requirements. As of March 2023, the bank’s tier-1 capital base stood at Rs 1,844.82 crore, equivalent to 18.25 percent.
Initially, the bank had filed a draft red herring prospectus (DRHP) in July 2021, seeking to raise Rs 1,350 crore through a combination of a new issue worth Rs 750 crore and an offer for sale (OFS) of Rs 600 crore by its promoter, Utkarsh Coreinvest.
However, in August 2022, the bank revised its draft papers submitted to the Securities and Exchange Board of India (SEBI) for the IPO, reducing the issue size by 63 percent to Rs 500 crore. The bank’s initial plan was to raise Rs 1,350 crore through the IPO.
Established in 2016, Utkarsh Small Finance Bank commenced its operations in 2017. Its product offerings include a diverse range of deposit products such as savings accounts, salary accounts, current accounts, recurring and fixed deposits, as well as locker facilities. As of March 2023, the bank operates across 26 states and Union Territories, with 830 banking outlets and 15,424 employees catering to approximately 3.59 million customers, predominantly located in rural and semi-urban areas, particularly in Bihar, Uttar Pradesh, and Jharkhand.
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For the fiscal year 2022-23, the bank reported a net profit of Rs 404.50 crore, a significant increase from Rs 61.46 crore in the previous year. Its total income for the fiscal stood at Rs 2,804.29 crore, compared to Rs 2,033.65 crore the previous year. The bank’s gross loan portfolio expanded to Rs 13,957.11 crore from Rs 10,630.73 crore a year ago, while total deposits increased to Rs 13,710.14 crore from Rs 10,074.18 crore in the previous year. The gross non-performing assets (NPAs) for the fiscal year stood at 3.75 percent, down from 6.1 percent the previous year, while the net NPAs were at 1.33 percent, a decrease from 2.31 percent.
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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