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The ₹500-crore IPO of Utkarsh Small Finance Bank opens for public subscription today with a price band of ₹23-25. The issue will close on July 14.
While 75 per cent of the issue would be available for allocation to QIBs, up to 15 per cent is reserved for non-institutional investors and the balance 10 per cent for retail individual investors. Minimum bid lot is 600 equity shares.
Anchor investors
On Tuesday, Utkarsh Small Finance Bank has raised ₹222.75 crore from anchor investors as part of IPO process.
The board of directors of the bank, in consultation with ICICI Securities Limited and Kotak Mahindra Capital Company Limited (Book Running Lead Managers), has finalised allocation of 8.91 crore shares to anchor investors at ₹25 a share.
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Among the anchor investors participated in the anchor book included 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 and AG Dynamics Funds.
Utility of funds
The IPO is entirely a fresh issue of shares. The IPO proceeds will be used to expand the bank’s business over the next two years and help it become a multi-product bank,
According to Utkarsh Small Finance Bank’s MD and CEO Govind Singh, post 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
The Varanasi-based 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.
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