UTKARSH SMALL FINANCE BANK 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.

Opening Date:

To be announced

Listing At:

BSE, NSE

Closing Date:

To be announced

Issue Size:

₹ 1350 cr

Price Band:

To be announced

Face Value:

₹10

per equity share

Market Lot:

To be announced

Opening Date:

To be announced

Listing At:

BSE, NSE

Closing Date:

To be announced

Issue Size:

₹ 1350 cr

Price Band:

To be announced

Face Value:

₹10

per equity share

Market Lot:

To be announced

Listing at NSE, BSE

UTKARSH SMALL FINANCE BANK LIMITED IPO Important Dates:

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 NA

View all upcoming IPOs

About Utkarsh Small Finance Bank Limited

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.

Utkarsh Small Finance Bank Limited IPO Objectives:

  • Alleviating potential stress to individual borrowers and small businesses impacted due to the resurgence of COVID-19 and permitted restructuring of existing loans as per norms.

  • Augment the bank’s Tier 1 capital base to meet its future capital requirements.

Why should you invest in the Utkarsh Small Finance Bank Limited IPO?

Below are our top 2 reasons:

  • As of September 2021, Utkarsh Small Finance Bank Limited has had nearly 2.74 million customers including customers of credit and deposit.
  • Most of their customers hail from semi-urban and rural areas of Bihar, Uttar Pradesh, and Jharkhand contributing to 41.91%, 27.32%, and 6.74% of the total gross loan portfolio respectively.

Financial Highlights

 

(₹ Crores, except percentages)

 

FY19

FY20

FY21

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%

How to apply for Utkarsh Small Finance Bank Limited IPO?

There are two ways by which investors can choose to start trading. One is through UPI, and the other is with the help of a Demat account. The processes are discussed below:

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

Utkarsh Small Finance Bank Limited Noteworthy Highlight:

Utkarsh Small Finance Bank Limited are among the most profitable SFBs in India and the leading SFBs in terms of return on assets and had the highest return on equity among SFBs in India in Fiscal 2020.

Utkarsh Small Finance Bank Limited IPO SWOT Analysis

Strength Opportunity Weakness Threat

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

India’s rural and Semi-urban underserved or unserved segments, particularly in the poor states are key growth drivers to Utkarsh Bank.

The Bank has not engaged in any derivatives contracts during the year ended 31 March 2021, 31 March 2020 and 31 March

2019.

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

Its Micro banking

portfolio is present in the 11 States and Union Territories.

Small finance banks offer higher interest rates than their larger peers.

A pandemic like COVID has slowed down the revenue and future plans to progress of the Bank to some extent.

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

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.

According to ICRA, SFBs are likely to register an improvement in the growth rate of their assets in the upcoming financial year to 20% from the 18% growth witnessed in FY21.

The Bank does not enter into any trade-in financial instruments including derivative financial instruments

for speculative purposes.

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

Competitive Analysis Market Peer:

Like any other Small Finance Banks in India, UTKARSH SFB faces immense competition from other banks like below:

Listed Peers

Total Income ( INR in Cr )

Return on Net worth ( RoNW )

Equitas Small Finance Bank

2927

8.88%

Ujjivan Small Finance Bank limited

3025

11.05%

Credit Access Grameen Limited

1705

12.27%

Spandana Spoorty Financial Limited

1469

13.40%

Bandhan Bank Limited

3023

19.90%

AU Small Finance Limited

4991

15.60%

Frequently Asked Question

What is UTKARSH SFB Ltd's Initial Public Offering?

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.

When will allotments for the Utkarsh Small Finance Bank Limited IPO become available?

Utkarsh Small Finance Bank Limited IPO will finalize the allotment by

What will the IPO lot size for Utkarsh Small Finance Bank Limited Ltd be?

Each Utkarsh Small Finance Bank Limited IPO lot has <> shares.

When will Utkarsh Small Finance Bank Limited IPO be available to buy?

The IPO ofUtkarsh Small Finance Bank Limited Ltd will be open for subscription from <>.

What is Utkarsh Small Finance Bank Limited’s smallest lot size available to retail investors?

The minimum market lot size for the Utkarsh Small Finance Bank Limited IPO is <> shares.

Which exchanges will Utkarsh Small Finance Bank Limited list on?

Utkarsh Small Finance Bank Limited shares will be listed on both BSE as well as the National Stock Exchange (NSE).

What is the IPO size of Utkarsh Small Finance Bank Limited?

The Rs Rs 1350 crore initial public offering (IPO) ofUtkarsh Small Finance Bank Limited is available from <>.

How to check the allotment status of Utkarsh Small Finance Bank Limited IPO on the AngelOne App?

The easiest ways to check your IPO allotment status on the AngelOne app are below:

Step 1: Login & Look for Investment Opportunities via Angelone App.

Step 2: Choose IPOs & FPOs.

Step 3: Click Order Book.

How will I get my Utkarsh Small Finance Bank Limited stock?

Following allotment, the Utkarsh Small Finance Bank Limited shares will be credited to the Demat account.

Can I use one PAN to submit multiple applications for the public issue ofUtkarsh Small Finance Bank Limited?

No, you cannot use the same PAN to make multiple applications for this Utkarsh Small Finance Bank Limited IPO or any other public offering.

Is it necessary to give immediate approval to a UPI mandate request?

Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.

Who owns Utkarsh Small Finance Bank Limited?

Mr Govind Singh is the current owner of Utkarsh Small Finance Bank Limited.

What are the expected listing gains for the Utkarsh Small Finance Bank Limited IPO?

It is difficult to anticipate the listing gains of each IPO, however, there are a few factors that have a significant impact:

1. Market movement on the day of the listing.

2. Utkarsh Small Finance Bank Limited stock market supply and demand from investors and dealers.

3. The interest of HNI investors in particular.

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