Utkarsh Small Finance Bank IPO

Utkarsh Small Finance Bank is among the most profitable SFBs in India and among the leading SFBs in terms of return on assets and had the highest return on equity among SFBs in India in Fiscal 2020. The bank is headquartered in Varanasi, Uttar Pradesh and has over the years expanded its SFB operations strategically in states where it has been able to leverage the prior microfinance experience of UCL.

The bank has filed a DRHP worth over Rs.1,350 crore with SEBI. The issue consists of a fresh issue worth Rs.750 crore and an offer for sale of equity shares worth around Rs.600 crore. The bank is considered a pre-IPO placement of Rs.250 crore which will be deducted from the amount of fresh issue.

The bank proposes to utilize the net proceeds from the fresh issue towards augmenting its Tier –1 capital base to meet its future capital requirements. Further, the proceeds from the fresh issue will also be used towards meeting the expenses in relation to the offer.

Utkarsh Small Financial Bank IPO Important Dates:-

Opening Date

12th July, 2023

Closing Date

14th July, 2023

Price Band

₹ 23 - ₹ 25

Issue Size

₹ 500 Cr

Face Value

₹ 10/- Per Share

Market Lot

600 Shares and in multiple thereof

Listing at NSE, BSE

IPO Open Date	Wednesday, 12 July 2023
IPO Close Date	Friday, 14 July 2023
Allotment Date	Wednesday, 19 July 2023
Initiation Of Refunds	Thursday, 20 July 2023
Credit Of Shares To Demat Account	Friday, 21 July 2023
IPO Listing Date	Monday, 24 July 2023
UPI Mandate Expiry Date	5 PM on Jul 14, 2023

Other Details of Utkarsh Small Financial Bank Ltd IPO

Particulars (in Rs. Crores)	FY 2019	FY 2020	FY 2021
Net profit for the year	110.8	186.74	111.81
Average Shareholders’ Equity	694.03	919.16	1119.40
Total Average Assets	5014.23	7447.50	10690
Net profit as a percentage of Total Average Assets	2.21%	2.51%	1.05%
Net profit as a percentage of Average Shareholders’ Equity	15.97%	20.32%	9.99%
Average shareholders’ Equity as a % of Total Average Assets. Gross Loan Portfolio	13.84%	12.34%	10.47%
Gross Loan Portfolio	47,415.50	66,599.99	84,156.60
Advances	46,681.66	62,815.97	82,168.58
Net profit as a percentage of Gross Loan Portfolio	2.34%	2.80%	1.33%
Net profit as a percentage of advances	2.37%	2.97%	1.36%

Know before investing

Strengths

Deep understanding of microfinance segment and strong rural and semi-urban franchise

Diversified distribution network with significant cross-selling opportunities

Robust risk management and effective operations resulting in superior asset quality

Risks

Inability to comply with stringent regulatory requirements and prudential norms, regulations and norms may have an adverse effect on business, results of operations, financial condition and cash flows

Inability to access sources of funds in an acceptable and timely manner or any disruption in the access to funds would adversely impact results of operations, financial condition and cash flows

Decrease in the value of the collateral or delay in enforcing collateral when borrowers default on their obligations, may result in failure to recover the expected value of collateral security exposing us to potential loss

How to apply for Utkarsh Small Finance Bank Limited IPO ?

Retail investors need to apply for the IPO using UPI

 UPI Link your bank account to a UPI ID.
Register your UPI id with your Demat account.
Subscribe for Utkarsh Small Finance Bank Limited IPO and approve the payment on your UPI ID. 

Demat Account

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Frequently asked questions

What is an IPO ?

An IPO also known as initial pulic offering or stock launch is a process when a private company sale its shares to public for the first time. Learn more about IPO at our knowledge centre.
What is Utkarsh Small Finance Bank Limited IPO?

Utkarsh Small Finance Bank Limited has filed a DRHP worth over Rs.1,350 crore, with SEBI. The issue consists of a new issue worth Rs.750 crore and an offer to sell equity shares worth around Rs.600 crore.
What is a lot size?

A lot size is the minimum number of shares that an investor has to bid for. A lot size differs for each IPO and is fixed by the company.
What is an IPO price band?

IPO Price Band is the price range within which investors can bid for the shares. The minimum price is called the floor price and the maximum price is called the cap price.
What is issue size in an IPO?

Issue size is the total value of an IPO. It is calculated by multiplying the number of shares offered by the company by the issue price per share.
Where can one check IPO allotment status?

You will receive an email on your registered email id if the IPO shares are allotted to you. Alternatively, you can also visit the registrar of the company’s official website and provide the details as asked in the allotment status section of the website.
How are IPO investments taxed?

IPOs, as such, do not have any taxes. You are taxed only when you decide to sell the IPO shares. Any monetary profit you make while selling the IPO shares is referred to as ‘capital gains’.

Capital gains tax is charged depending on how long you held the shares for. If you owned the shares for less than 12 months, it is considered as short-term capital gains and if it is over 12 months, it is referred as long-term capital gains.

Tax on short-term capital gains is 15%. It is 10% for equity gains in the long run (over 12 months). Do remember that you are taxed if the equity proceeds exceed Rs 1 lakh.

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