Utkarsh Small Finance Bank IPO Date, Price, GMP, opens for subscription

Discover all the essential information regarding the Utkarsh Small Finance Bank Ltd IPO. Delve into the article for a comprehensive understanding of the bank, and stay tuned to Sarkari Result for in-depth analysis and the latest updates.

Utkarsh Small Finance Bank IPO

According to reports, Utkarsh Small Finance Bank (SFB) is a prominent small finance bank headquartered in Varanasi, with a strong focus on providing microfinance services to underserved and unserved areas. In October 2015, Utkarsh Coreinvest, the bank’s promoter, received provisional approval from the RBI to establish a Small Finance Bank. Subsequently, Utkarsh SFB was formed as a wholly-owned subsidiary in April 2016 and commenced its operations in January 2017. The bank has established its presence in 22 states and four union territories, with 830 banking outlets as of March 31, 2023. Remarkably, more than 27% of these outlets are located in rural centers that previously lacked access to banking services. Utkarsh SFB boasts a diverse product portfolio, with its top seven states accounting for a significant portion of its loan portfolio.

Utkarsh Small Finance Bank IPO Details

The Utkarsh Small Finance Bank IPO is set to raise up to Rs 500 crore through a new offering. The funds generated from this IPO will be utilized to strengthen the Tier 1 capital base, ensuring the bank is well-equipped to meet its future capital needs. Now let’s delve into a SWOT analysis of Utkarsh Small Finance Bank Ltd IPO, highlighting its positive aspects and potential growth opportunities.

The Utkarsh Small Finance Bank primarily focuses its banking operations on rural and semi-urban areas, which offer significant growth potential. It’s worth noting that despite contributing 47% to India’s GDP, the rural segment only accounts for 8% of the total credit in the banking sector.

Between FY21 and FY23, the bank experienced a commendable compound annual growth rate (CAGR) of over 18% in its gross loan portfolio, which reached 13,957 crore. During the same period, the net interest income also saw a noteworthy increase of 22.1%, amounting to Rs 1,529 crore.

The bank achieved an impressive 31.6% growth in its assets under management from FY19 to FY22.

Furthermore, there has been a consistent rise in deposits from Rs 7,507 crore in FY21 to Rs 13,710 crore in FY23. Simultaneously, the CASA (Current Account and Savings Account) to total deposit ratio improved from 17.6% to 20.8% within the same period.

Don’t miss out on these important details regarding the IPO of Utkarsh Small Finance Bank Ltd. The company has submitted its Draft Red Herring Prospectus to SEBI, the market regulator. The document filed by the company reveals the opening date of the Utkarsh SFB IPO, which is scheduled for July 12, 2023. The IPO will then conclude on July 14, 2023. On July 19, 2023, investors will be informed about the allotment status. This IPO consists of new shares being issued. The price range for the Utkarsh SFB IPO has been set at Rs. 23 to Rs. 25 per share. Interested investors are encouraged to select a price within this range when applying for the IPO.