Utkarsh Small Finance Bank’s IPO Sets Price Band At ₹23 to ₹25 Per Equity Share

Varanasi-based Utkarsh Small Finance Bank Limited proposes to open its initial public offering comprising a fresh issue of such number of Equity Shares aggregating up to ₹5,000 million on Wednesday. Bid/ Issue Closing Date will be Friday, July 14, 2023. The Anchor Investor Bidding Date is one Working Day prior to the Bid/Issue Opening Date, that is July 11, 2023.

The Bank has fixed the price band at ₹23 to ₹25 per Equity Share for the Issue. Bids can be made for a minimum of 600 Equity Shares and in multiples of 600 Equity Shares thereafter.

Bank recorded the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among small finance banks (“SFB”).

The Bank is promoted by Utkarsh CoreInvest Limited, which commenced its operations as a NBFC in Fiscal 2010 and focused on providing microfinance to unserved and underserved segments particularly in the states of Uttar Pradesh and Bihar.

Utkarsh CoreInvest Limited received the RBI In-Principle Approval on October 7, 2015, to establish an SFB, following which it incorporated Utkarsh Small Finance Bank Limited as a wholly-owned subsidiary on April 30, 2016. Subsequent to the Bank obtaining the RBI Licence on November 25, 2016, to establish and carry-on business as an SFB, Utkarsh CoreInvest Limited transferred its business of providing microfinance, as a going concern to the Bank, which commenced its operations from January 23, 2017.

The Equity Shares offered through the red herring prospectus dated July 6, 2023 (“Red Herring Prospectus” or “RHP”) are proposed to be listed on both BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”).

ICICI Securities Limited and Kotak Mahindra Capital Company Limited are the book running lead managers (“BRLMs”), while KFin Technologies Limited is the Registrar to the Issue.