Shares of Utkarsh Small Finance Bank made a strong debut at the bourses on Friday by gaining nearly 92 per cent, ignoring the turbulent market condition, on listing day.

As against the IPO price of ₹25, the stock closed at ₹47.94 on the BSE on Friday; it opened at ₹39.95 and closed at the highest level. On the NSE, it closed at ₹48, after opening at ₹40.

The IPO had received overwhelming response from all category of investors — it received bids for 1,228 crore shares against 12.05 crore shares on offer. As against a size of ₹500 crore, the IPO generated interest of ₹30,000 crore.

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Anubhuti Mishra, Equity Research Analyst, Swastika Investmart Ltd, said: Utkarsh SFB made a strong debut, listing at ₹40 a share — a premium of 60 per cent over the upper end of the price band of ₹25. The strong listing was in line with expectations. “Utkarsh SFB is well-positioned to benefit from the growth of the SFB sector, as it has a strong focus on underserved segments of the population. After listing at such a level, we will suggest booking this gain; however, aggressive investors can choose to buy during any subsequent dip,” he added.

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.

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 are some of the anchor investors.

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