Utkarsh Small Finance Bank IPO, you should know before investing.

Utkarsh Small Finance Bank, a Varanasi-based financial institution, is set to launch its initial public offering (IPO) valued at ₹500 crore. The subscription period for the IPO will commence on Wednesday, July 12, and conclude on Friday, July 14. Prior to that, on Tuesday, July 11, the anchor investors' auction will initiate.

The allotment process is scheduled to occur on Wednesday, July 19, 2023. Following the allotment, the shares will be credited to the demat accounts of the allottees on Thursday, July 20. Finally on Monday, July 24, the the stock is set to commence trading on both the exchanges.

According to the red herring prospectus (RHP), the Utkarsh Small Finance Bank IPO consists solely of fresh issue of equity shares amounting to ₹500 crore, with no offer for sale (OFS) component. Each equity share has a face value of ₹10.

The proceeds from the IPO will be utilised to enhance the bank's tier-1 capital base and fulfill its future capital requirements. As of March 2023, the bank's tier-1 capital base stood at ₹1,844.82 crore, which accounted for 18.25 percent.

ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd have been appointed as the book running lead managers for the public offering. The register to the issue is KFin Technologies Ltd.

Utkarsh Corelinvest Limited, previously known as Utkarsh Micro Finance Limited, is the sole promoter of the bank. As stated in the Red Herring Prospectus, the promoter and it's nominees currently possess 759,272,222 equity shares, which accounts for 84.75% of the issued shares prior to the IPO.

Established in 2016, Utkarsh Small Finance Bank commenced its operations in 2017. The bank provides a diverse range of deposit products, including savings accounts, salary accounts, current accounts, recurring and fixed deposits, as well as locker facilities. By match 2023, it has established it's presence in 26 states and union territories, with a network of 830 banking locations employing 15,424 individuals. The bank served a customer base of 3.59 million, predominantly residing in rural and semi-rural areas, with a significant concentration in Bihar, Uttar Pradesh, and Jharkhand.

Disclaimer:-
Investment in stocks are subject to market risks, read all scheme related documents carefully.

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