Utkarsh Small Finance Bank IPO Listing: Shares have bumper debut on bourses, list at 60% premium

 

Utkarsh Small Finance Bank debuted on the bourses with a 60% premium, listing at Rs 39.95 versus the issue price of Rs 25.

Utkarsh Small Finance Bank IPO: Utkarsh Small Finance Bank shares listed at 59.8% premium over IPO price on NSE and BSE amid positive domestic market. The shares debuted at Rs 39.95 on the BSE, as compared to the issue price of Rs 25. A positive listing was expected as ahead of the market debut, Utkarsh Small Finance Bank shares were trading at a premium of Rs 16.10 in the grey market.
Utkarsh Small Finance Bank IPO subscription data

Utkarsh Small Finance Bank IPO opened for subscription on 12 July and the issue was fully subscribed 110.77 times on the last day of subscription, helped by overwhelming participation from institutional buyers. The Qualified Institutional Buyers (QIBs) category was subscribed 135.71 times, the portion for non-institutional investors received 88.74 times subscription and Retail Individual Investors (RIIs) quota got oversubscribed by 78.38 times. Employees bid 18.02x for their reserved portion.
The price band for its public issue at Rs 23-25 per equity share. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 500 crore from the IPO. The IPO comprises a fresh issue of shares, with no OFS component. Following the listing, the promoter’s holding will be diluted to 69.28% from 84.75%.The price band for its public issue at Rs 23-25 per equity share. At the upper end of the price band, the company’s promoters and shareholders seek to raise Rs 500 crore from the IPO. The IPO comprises a fresh issue of shares, with no OFS component. Following the listing, the promoter’s holding will be diluted to 69.28% from 84.75%.


“USFB is in constant efforts to improve its business with deeper insights into customer trends, and develop customized products for its customer segments. It intends to further the growth through diversification of product offerings, customer segments and geography supported by technology, process and data analytics. With improvement in NIMs and NPAs in declining trend over the last three years, growth in earnings remains strong. On FY23 financials, the IPO is valued at 6.8x P/E and 1.1 times P/BV, we recommend SUBSCRIBE to this issue for the long term,” said Reliance Securities in a note.

About Utkarsh Small Finance Bank

USFB, as a small finance bank, offers a range of asset products, including micro-banking loans, retail loans, wholesale lending, housing loans, commercial vehicle/construction equipment loans, and gold loans. The bank also provides savings accounts, current accounts, term/recurring deposit accounts, and non-credit offerings such as ATM-cum-debit cards, bill payment systems, distributed third-party point-of-sales terminals, mutual funds, and insurance products.

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