Utkarsh Small Finance Bank Limited is an SFB (Small Finance Bank) in India and recorded the second fastest AUM growth in the years Fiscal 2019 and Fiscal 2022 among SFBs with AUM of more than Rs. 50 billion.
The bank extends its facilities to individuals and businesses to assist them with their financial requirements.
The services offered by Utkarsh SFB include:
- Accounts and Deposits
- Cards
- Insurance and Investments
- Loans
- Ways to Bank
Customers of Utkarsh Small Finance Bank Limited can avail of features like Top-up/Balance Transfer facility, Hassle-free processing with Easy Documentation Process, Avail loan up to Rs. 50 crores and Tenure up to 30 years, and efficient eligibility for salaried and self-employed individuals.
The company has a diverse product portfolio and microfinance remain a focused business segment.
The asset products of the entity include:
- micro banking loans – joint liability group loans and individual loans
- retail loans – unsecured loans, and secured loans
- wholesale lending – short-term and longterm loan
- housing loans with a focus on affordable housing
- commercial vehicle/construction equipment loans
- gold loans
The Company’s operations are spread across India and are present in 22 States and Union Territories with 686 Banking Outlets and 12,617 employees, as of March 31, 2022.
Utkarsh Small Finance Bank IPO – Details
| IPO Opening Date | 12 July 2023 |
| IPO Closing Date | 14 July 2023 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 20,00,00,000 Shares Worth ₹500 Crore Fresh Issue: 20,00,00,000 Shares Worth ₹500 Crore |
| Employee Reservation | 20,00,000 Shares Worth ₹5 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹23 – ₹25 |
| Market Lot | 600 Shares |
| Min Order | 600 Shares (1 Lot) |
| Listing At | BSE, NSE |
| Register | Kfin Technologies Limited |
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Utkarsh Small Finance Bank IPO – Date Schedule
| IPO Open Date | 12 July 2023 |
| IPO Close Date | 14 July 2023 |
| Basis of Allotment Date | 19 July 2023 |
| Initiation of Refunds | 20 July 2023 |
| Credit of Shares to Demat Account | 21 July 2023 |
| IPO Listing Date | 24 July 2023 |
Utkarsh Small Finance Bank IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 600 | 15,000 |
| Retail (Max) | 13 | 7800 | 1,95,000 |
| S-HNI (Min) | 14 | 8400 | 2,10,000 |
| S-HNI (Max) | 66 | 39,600 | 9,90,000 |
| B-HNI (Min) | 67 | 40,200 | 10,05,000 |
Competitive Strengths
- Sound understanding of microfinance segment and presence in rural and semi-urban areas;
- Growing deposits with focus on retail deposits;
- Diversified distribution network with significant cross-selling opportunities;
- Focus on risk management and effective operations; and
- Stable growth with cost efficient operational performance;
- Leadership complementing our strengths.
Company Promoters
- Utkarsh CoreInvest Limited
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax |
|---|---|---|---|
| 31 March 2020 | 1406.18 | 1219.43 | 186.74 |
| 31 March 2021 | 1705.83 | 1594.02 | 111.81 |
| 31 March 2022 | 2033.64 | 1972.18 | 61.46 |
| 31 March 2023 | 2804.28 | 2399.78 | 404.50 |
Key Performance Indicator
| KPI | Values |
|---|---|
| P/E | 6.78 |
| Debt/Equity | 8.03 |
| EPS (Rs) | 4.52 |
| RoNW | 20.22% |
Object Of The Issue
- The Utkarsh Small Finance Bank Limited proposes to utilize the Net Proceeds from the Issue towards augmenting its Tier – 1 capital base to meet its future capital requirements. Further, the proceeds from the Issue will also be used towards meeting the expenses in relation to the Issue.
Utkarsh Small Finance Bank IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Equitas Small Finance Bank | 19.61 |
| 2 | 10 | Ujjivan Small Finance Bank Limited | 6.93 |
| 3 | 10 | Credit Access Grameen Limited | 24.13 |
| 4 | 10 | Spandana Sphoorty Financial Limited | 403.33 |
| 5 | 10 | Bandhan Bank Limited | 16.51 |
| 6 | 10 | AU Small Finance Bank Limited | 35.36 |
| 7 | 10 | Suryoday Small Finance Bank | 22.90 |
| 8 | 10 | Fusion Micro Finance Limited | 13.50 |
Utkarsh Small Finance Bank IPO Strengths
- A strong presence across 18 states and union territories with more than 528+ banking outlets throughout the country.
- Its Micro banking portfolio is present in the 11 States and Union Territories.
- Bank has opened 51 new Banking Outlets in Fiscal 2021 Confirming the positive growth even during the COVID pandemic. Plus, a Diversified distribution network with significant cross-selling opportunities.
Utkarsh Small Finance Bank IPO Risks
- Bigger SFB Competitors like Equitas, Ujjivan, Credit access, Bandhan and AU SFB are all doing great in this domain.
- High dependency on top 5 depositors or top 20 depositors, which is getting reduced in last 3 financial years.
- The bank is currently highly dependent on its micro banking segment. Particularly Joint Liability loan groups and any adverse development can result in Bank’s business.
Utkarsh Small Finance Bank IPO Promoter Holding
| Pre Issue Share Holding | 84.75% |
| Post Issue Share Holding | 69.28% |
Utkarsh Small Finance Bank IPO Prospectus
- Utkarsh Small Finance Bank IPO DRHP
- Utkarsh Small Finance Bank IPO RHP
- Anchor Investors in Utkarsh Small Finance Bank IPO
Company Contact Information
| Utkarsh Small Finance Bank Limited Utkarsh Tower, NH – 31 (Airport Road), Sehmalpur, Kazi Sarai, Harhua, Varanasi – 221 105 Phone: +91 542 660 5555 Email: shareholders@utkarsh.bank Website: https://www.utkarsh.bank/ |
Utkarsh Small Finance Bank IPO Registrar
| Kfin Technologies Limited Phone: 04067162222, 04079611000 Email: utkarsh.ipo@kfintech.com Website: https://ris.kfintech.com/ipostatus/ |
Utkarsh Small Finance Bank IPO Lead Manager(s)
| 1. ICICI Securities Limited 2. Kotak Mahindra Capital Company Limited |
Utkarsh Small Finance Bank IPO FAQs
| What is Utkarsh Small Finance Bank IPO? Utkarsh Small Finance Bank IPO is a main-board IPO. The issue is priced at ₹22 to ₹25 per equity share. The IPO is to be listed on BSE & NSE. |
| When Utkarsh Small Finance Bank IPO will open? The IPO is to open on 12 July 2023 for QIB, NII, and Retail Investors. |
| What is Utkarsh Small Finance Bank IPO Investors Portion? The investors’ portion for QIB – 75%, NII – 15%, and Retail – 10%. |
| How to Apply the Utkarsh Small Finance Bank IPO? You can apply Utkarsh Small Finance Bank IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Utkarsh Small Finance Bank IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Utkarsh Small Finance Bank”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Utkarsh Small Finance Bank IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Utkarsh Small Finance Bank”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Utkarsh Small Finance Bank IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Utkarsh Small Finance Bank”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Utkarsh Small Finance Bank IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Utkarsh Small Finance Bank”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Utkarsh Small Finance Bank IPO Size? Utkarsh Small Finance Bank IPO size is ₹500 Cr. |
| What is Utkarsh Small Finance Bank IPO Price Band? Utkarsh Small Finance Bank IPO Price Band is ₹23 to ₹25. |
| What is Utkarsh Small Finance Bank IPO Minimum and Maximum Lot Size? The minimum bid is 600 Shares with ₹15,000 amount while the maximum bid is 7800 shares with ₹1,95,000. |
| What is the Utkarsh Small Finance Bank IPO Allotment Date? Utkarsh Small Finance Bank IPO allotment date is 19 July 2023. |
| What is the Utkarsh Small Finance Bank IPO Listing Date? Utkarsh Small Finance Bank IPO listing date is 24 July 2023. The IPO is to list on BSE and NSE. |
