Utkarsh SFB IPO | Review

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Utkarsh Small Finance Bank Limited has come up with an initial public offer (IPO). It will open on July 12-14, 2023 at Rs.23-25 a share. The IPO issue size is around Rs.500.00 crores. The minimum bid will be for 600 shares and in its multiples thereafter.

Overview

Utkarsh Small Finance Bank Limited was incorporated in the year 2016. It is recorded as the third fastest Gross Loan Portfolio growth between 2019 and 2023. It is focused on providing microfinance to unserved and underserved segments. The company has headquarters located in Varanasi, Uttar Pradesh.

The banking operations are spread across India and are present in 26 States and Union Territories with 830 Banking Outlets and 15,424 employees. Bank’s operations are focused in rural and semi-urban areas and had 3.59 million customers.

Website – https://www.utkarsh.bank/

Promoters

Utkarsh CoreInvest Limited

Promoter Holding

Pre-Issue Shareholding – 84.75%

Post-Issue Shareholding – 69.28%

Strength & Weakness

Strengths	Weaknesses
Sound understanding of microfinance segment	Dependent on Key Managerial Personne
Presence in rural and semi-urban areas	Show cause notice from SEBI
Growing deposits with focus on retail deposits	Limited number of customers
Diversified distribution network	Inadequate insurance coverage
Focus on risk management	Major unsecured loan portfolio
Cost efficient operational performance	Exposed to operational and credit risks

Products

Accounts & Deposits

Cards

Competitors

Equitas Small Finance Bank	Ujjivan Small Finance Bank
Credit Access Grameen Ltd	Spandana Sphoorty Financial Ltd
Bandhan Bank	AU Small Finance Bank
Suryoday Small Finance Bank	Fusion Micro Finance Ltd

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2020	1,406.18	186.74
31-Mar-2021	1,705.84	111.82
31-Mar-2022	2,033.65	61.46
31-Mar-2023	2,804.29	404.50

Objects of Issue

1. To meet its future capital requirements.;

2. Meeting the expenses in relation to the Issue.

Utkarsh SFB IPO Lot Size

Application	Lot	Shares	Amount
Retail (Min)	1	600	Rs.15,000
Retail (Max)	13	7,800	Rs.1,95,000
S-HNI (Min)	14	8,400	Rs.2,10,000
S-HNI (Max)	66	39,600	Rs.9,90,000
B-HNI (Min)	67	40,200	Rs.10,05,000

Utkarsh SFB IPO Details

IPO Opening Date	July 12, 2023
IPO Closing Date	July 14, 2023
Face Value	Rs.10 per Equity Share
IPO Price	Rs.23-25 per share
Market Lot	600 shares
Minimum Order Quantity	600 shares
Listing At	NSE, BSE
Fresh Issue	Upto Rs.500.00 Crore
Issue Size	Upto Rs.500.00 Crore
QIB Shares Offered	75% of the offer
Retail Shares Offered	10% of the offer
NII/HNI Shares Offered	15% of the offer

Utkarsh SFB IPO Timetable

IPO Date	July 12-14, 2023
Allotment Date	July 19, 2023
Initiation of Refunds	July 20, 2023
Credit of share to Demat a/c	July 21, 2023
IPO Listing Date	July 24, 2023