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Utkarsh Small Finance Bank IPO to Open on July 12, Check Details

Utkarsh Small Finance Bank (Utkarsh SFB) is set to open its initial public offering (IPO) on July 12, 2023. The IPO will offer fresh issue shares worth INR 500 crore ($67 million) to increase the bank’s Tier 1 capital base. The price band for the IPO has been set at INR 1,250–1,350 per share.

The IPO will be open for subscription from July 12 to July 14, 2023. The anchor investors’ bidding process will take place on July 11, 2023. The shares will be listed on the BSE and NSE on July 20, 2023.

Utkarsh SFB is a leading small finance bank in India. It was established in 2016 and began operations the following year. The bank offers a wide range of financial products and services to its customers, including savings accounts, current accounts, loans, and investments.

The bank has a strong track record of growth. In the financial year 2022–23, Utkarsh SFB’s gross loan portfolio grew by 38% to INR 6,080 crore. The bank’s net profit also grew by 30% to INR 206 crore in the same period.

Kotak Mahindra Capital Company, Axis Capital, and ICICI Securities are in charge of overseeing the IPO.

Key Details of the IPO

  • Issue size: INR 500 crore
  • Price band: INR 1,250–1,350 per share
  • Lot size: 12 shares
  • Subscription dates: July 12–14, 2023
  • Anchor investors’ bidding date: July 11, 2023
  • Listing date: July 20, 2023

Who Can Invest in the IPO?

The IPO is open to all investors, including retail investors, high-net-worth individuals (HNIs), and qualified institutional buyers (QIBs). Retail investors can invest a minimum of INR 2,500 and a maximum of INR 2 lakh in the IPO. HNIs and QIBs can invest a minimum of INR 5 lakh and a maximum of INR 25 crore in the IPO.

How do I apply for the IPO?

Investors can apply for the IPO through a variety of channels, including online, offline, and through the IPO bidding platform of the stock exchanges.

To apply online, investors can visit the website of the stock exchanges or the website of the IPO manager. To apply offline, investors can visit the branch of a participating bank.

Risks Associated with the IPO

There are always risks associated with investing in an IPO. Some of the risks associated with Utkarsh SFB’s IPO include:

  • The bank’s financial performance may not meet expectations.
  • The market conditions may be unfavorable at the time of listing.
  • The price of the shares may decline after listing.

Conclusion

Utkarsh SFB’s IPO is a good opportunity for investors to invest in a leading small finance bank with a strong track record of growth. However, investors should be aware of the risks associated with the IPO before investing.

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