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. Utkarsh Small Finance Bank Limited provides microfinance options to underserved or unserved segments, particularly in the states of Bihar and Uttar Pradesh.

Headquartered in Varanasi, Utkarsh SFB is among the leading SFBs (Small Finance Banks) in the country in terms of ROA and they had the highest return on equity among the SFBs in the country. The company is spread widely across states having its presence in 18 states and union territories. Utkarsh Small Finance Bank Limited has 528 banking outlets with the support of 8.729 employees.

Utkarsh Small Finance Bank Limited provides affordable banking services - loans, accounts, deposits and investments across India to fulfil the regular needs of the customers.

The Promoter of this company is UTKARSH COREINVEST LIMITED. The lead managers of the issue are ICICI Securities Limited, IIFL Securities Limited, and Kotak Mahindra Capital Company Limited. The Registrar of this issue is KFin Technologies Private Limited.

Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

To be announced

Face Value

To be announced

Market Lot

To be announced

Listing at NSE, BSE

IPO Open Date	To be announced
IPO Close Date	To be announced
Allotment Date	To be announced
Initiation Of Refunds	To be announced
Credit Of Shares To Demat Account	To be announced
IPO Listing Date	To be announced
UPI Mandate Expiry Date	To be announced

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

A strong presence across 18 states and union territories with more than 528+ banking outlets throughout the country.

Its Micro banking portfolio is present in the 11 States and Union Territories.

Bank has opened 51 new Banking Outlets in Fiscal 2021 Confirming the positive growth even during the COVID pandemic. Plus, a Diversified distribution network with significant cross-selling opportunities.

Risks

Bigger SFB Competitors like Equitas, Ujjivan, Credit access, Bandhan and AU SFB are all doing great in this domain.

High dependency on top 5 depositors or top 20 depositors, which is getting reduced in last 3 financial years.

The bank is currently highly dependent on its micro banking segment. Particularly Joint Liability loan groups and any adverse development can result in Bank’s business