Varnasi-based Utkarsh Small Finance Bank Ltd recorded the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among SFBs has fixed the price band at ₹23 to ₹25 per Equity Share for its maiden public offer. The initial public offering (“IPO” or “Offer”) of the Company will open on Wednesday, July 12, 2023, for subscription and closes on Friday, July 14, 2023. Investors can bid for a minimum of 600 Equity Shares and in multiples of 600 Equity Shares thereafter. The public issue with a face value of Rs 10 each is a complete fresh issue of shares worth Rs 500 crore.
The Bank is promoted by Utkarsh Core Invest Limited, which commenced its operations as a NBFC in Fiscal 2010 and focused on providing microfinance to unserved and underserved segments particularly in the states of Uttar Pradesh and Bihar. Utkarsh CoreInvest Limited received the RBI In-Principle Approval on October 7, 2015, to establish an SFB, following which it incorporated Utkarsh Small Finance Bank Limited as a wholly-owned subsidiary on April 30, 2016. Subsequent to the Bank obtaining the RBI Licence on November 25, 2016, to establish and carry-on business as an SFB, Utkarsh Core Invest Limited transferred its business of providing microfinance, as a going concern to the Bank, which commenced its operations from January 23, 2017.
As on March 31, 2023, its operations are spread across 26 states and Union Territories with 830 banking outlets and 15,424 employees serving 3.59 million customers majorly located in rural and semi urban areas primarily in the states of Bihar, Uttar Pradesh. Its retail term deposits and CASA as a percentage of overall deposits comprised of 30.88% and 25.98% respectively, in the same period. Its product suite includes a range of deposit products including saving accounts, salary accounts, current accounts, recurring and fixed deposits (with callable and non-callable options) and locker facilities. It also offers diversified liabilities products at competitive rates targeted primarily at retail customers from all segments led by senior citizens, middle-class individuals and self-employed and salaried individuals.
In a span of three years, The Bank’s Gross Loan Portfolio has grown from ₹8,415.66 crore as of March 31, 2021 to ₹13,957.11 crore as of March 31, 2023. Its disbursements increased from ₹5,914.01 crore in Fiscal 2021 to ₹12,442.89 crore in Fiscal 2023. The deposits have also grown consistently and were ₹7,507.57 crore as of March 31, 2021, and ₹13,710.14 crore as of March 31, 2023. Comparing the fiscal 2021 and fiscal 2023, net profit has grown close to four times from Rs 111.82 crore to Rs 404.50 crore.
ICICI Securities Limited and Kotak Mahindra Capital Company Limited are the book running lead managers, while K Fin Technologies Limited is the registrar to the offer.
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