Utkarsh Small Finance Bank shares will be listed on the bourses on Friday. The company has fixed the IPO price at Rs 25, at the upper end of the price band. The IPO saw an overwhelming response from all investors, by subscribing 101.91 times.

The IPO received bids for 1,228 crore shares against 12.05 crore shares on offer, according to data available with the exchanges.

“The expected listing price for Utkarsh Small Finance Bank is around Rs 40, which is around 60 per cent higher than the IPO price of Rs 25 per share. This is based on the current grey market premium, which is supported by the strong response this IPO received,” said Anubhuti Mishra, equity research analyst at Swastika Investmart.

As against a size of ₹500 crore, the IPO generated interest of ₹30,000 crore.

While the portion reserved for retail individual investors was subscribed 72.10 times, the non-institutional investors’ portion received bids for 81.64 times and qualified institutional buyers’ mammoth 124.85 times. The employee quota was subscribed 16.58 times.

Anchor investors

On Tuesday, Varanasi-based Utkarsh Small Finance Bank raised ₹222.75 crore from anchor investors as part of the IPO process.

The board of directors of the bank, in consultation with ICICI Securities and Kotak Mahindra Capital Company (Book Running Lead Managers), has finalised allocation of 8.91 crore shares to anchor investors at ₹25 a share.

SBI Mutual Fund, ICICI Prudential, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Goldman Sachs Funds, SBI Life Insurance Company, Edelweiss Trusteeship, Founders Collective Fund, AG Dynamics Funds, etc. received the shares.

The IPO was entirely a fresh issue of shares. The IPO proceeds will be used to expand the bank’s business over the next two years in order to become a multi-product bank.

According to Utkarsh SFB’s MD and CEO Govind Singh, following the IPO, the bank’s capital adequacy ratio is expected to increase by 2-3 per cent from the current level of 20.6 per cent

Utkarshi SFB has operations across 26 States and Union Territories with 830 outlets and 15,424 employees. While 27.4 per cent of outlets are in unbanked rural centres, it has 36 lakh customers as of March 2023.