Utkarsh Small Finance Bank Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Utkarsh Small F.

CMP

53.22

-0.18 (-0.34%)

₹25

Offer Price

₹ 500.00 Cr

Issue Size

₹ 15,000

Min Investment

101.91x

Times Subscribed

600

Lot size

Time Line

  • 12
    Jul 2023
    Open
  • 14
    Jul 2023
    Close
  • 19
    Jul 2023
    Finalisation of Basis of Allotment
  • 20
    Jul 2023
    Initiation of Refunds
  • 21
    Jul 2023
    Transfer of Shares to Demat Account
  • 21
    Jul 2023
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Continue diversifying its retail asset portfolio

  • Grow retail deposits mix across geographies and customer segments to build stable funding source

  • Increase share of fee income and capitalize on cross-selling opportunities

  • Increasing use of technology and digital offerings for last mile delivery to customers

Products & Services

  • Utkarsh Small Finance Bank Limited is an SFB in India and recorded the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among SFBs with Gross Loan Portfolio of more than Rs. 60 billion.

Strengths

  • Sound understanding of microfinance segment and presence in rural and semi-urban areas;

  • Growing deposits with focus on retail deposits;

  • Diversified distribution network with significant cross-selling opportunities;

  • Focus on risk management and effective operations;

  • Stable growth with cost efficient operational performance;

Risks

  • The Bank is subject to stringent regulatory requirements and prudential norms of RBI and its inability to comply with such laws, regulations and norms may have an adverse effect on its business, results of operations, financial condition and cash flows.

  • After the completion of the Issue, its Promoter will continue to hold substantial shareholding in the Bank.

  • The bank is currently significantly dependent on its microbanking segment, particularly joint liability group ("JLG") loans, and any adverse developments in this segment could adversely affect its business, results of operations, financial condition and cash flows.

  • The Bank business is vulnerable to interest rate risk, and any volatility in interest rates or inability to manage interest rate risk could adversely affect its Net Interest Margins, income from treasury operations, business, financial condition, results of operations and cash flows.

  • The Bank Statutory Auditors have been debarred by the Reserve Bank of India from undertaking audit assignments for entities regulated by RBI for a period of two years with effect from April 1, 2022.

Company Promoters

Promoters Holding

Issue For IPO
84.75%
Pre Holding

84.75%

Post Holding

-

Top Promoters Holding

Financials

All values in Cr

Mar-2023 Mar-2023 Mar-2023 3-Yr trend
Revenue 2,504.98 (0.00%) 20.22 (-) 20.22 (0.00%)
Gross Profit 2,504.98 (0.00%) 20.22 (-) 20.22 (0.00%)
Net Income 2,504.98 (0.00%) 20.22 (-) 20.22 (0.00%)
Assets 2,504.98 (0.00%) 20.22 (-) 20.22 (0.00%)
Liabilities 2,504.98 (0.00%) 20.22 (-) 20.22 (0.00%)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Utkarsh Small Finance Bank Ltd 2,504.98 404.50 18,059.94 16,059.62 20.22 0.00 22.33 2.73 0.89
Equitas Small Finance Bank Ltd 4,161.88 573.59 34,958.13 34,958.13 11.12 4.71 46.44 1.64 0.00
Ujjivan Small Finance Bank Ltd 4,164.99 1,099.92 33,316.88 33,316.88 27.43 5.82 20.51 3.30 0.00
CreditAccess Grameen Ltd 3,545.12 826.06 21,858.10 21,858.10 16.17 51.82 321.37 3.77 3.19
Spandana Sphoorty Financial Ltd 1,400.75 12.32 9,382.60 9,382.60 0.39 1.74 436.62 0.13 1.96
Bandhan Bank Ltd 15,904.70 2,194.64 155,769.97 155,769.97 11.20 13.62 121.58 1.40 0.00
AU Small Finance Bank Ltd 8,205.41 1,427.93 90,216.12 90,216.12 13.00 21.86 164.64 1.58 0.00
Suryoday Small Finance Bank Ltd 1,183.68 77.69 9,861.22 9,861.22 4.90 7.32 149.28 0.78 0.00
Fusion Micro Finance Ltd 1,741.92 387.14 9,363.54 9,363.54 16.67 43.29 231.39 4.13 2.92

Book Running Managers

  • ICICI Securities
  • Kotak Mahindra Capital Company Ltd

Registrar & Transfer Agent

KFin Techologies Ltd

Karvy Selenium Tow-B,
31&32 Financial Dist,
Nanakramguda - Hyderabad-500032
Phone : 91-40-67162222 Fax: 91-40-23001153/23420814

Company Contact Information

Utkarsh Tower NH-31 (AirportRd,
Sehmalpur Kazi Sarai Harhua,
Varanasi - 221105
Phone : +91 542 660 5555 Email : shareholders@utkarsh.bank www.utkarsh.bank

Offer Related Information

Initial public offer of 200,000,000 equity shares* of face value of Rs. 10 each ("Equity Shares") of Utkarsh Small Finance Bank Limited ("The "Bank") for cash at a price of Rs. 25 per equity share (including a share premium of Rs. 15 per equity share) (the "Issue Price") aggregating to Rs. 500.00 crores* (the "Issue"). The issue includes a reservation of 2,000,000 equity shares*, aggregating to Rs. 5.00 crores* (constituting 1% of the size of the issue), for subscription by eligible employees... More

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