Wednesday, July 12, 2023

IPO for Utkarsh Small Finance Bank goes live today: Do you want to subscribe?

 NEW DELHI: From July 12 to July 14, the IPO of Utkarsh Small Finance Bank will open for public subscription. The initial public offering (IPO) price range for Utkarsh Small Finance Bank has been set at Rs 23-25 per share.

On July 11, bidding for anchor investors began. Utkarsh Little Money Bank on Tuesday said it has assembled Rs 223 crore from anchor financial backers.

The bank's tier 1 capital base will be strengthened in order to meet future capital requirements with the proceeds from the IPO, which is entirely made up of brand-new equity shares. Intrigued financial backers can offer for at least 600 value shares, with ensuing offers in products of 600 value shares.

Utkarsh was established in 2017 and provides locker facilities in addition to a variety of deposit products, such as savings accounts, salary accounts, current accounts, recurring and fixed deposits, and current accounts. As of Walk 2023, the bank works in 26 states and Association Regions, with 830 financial outlets serving around 3.6 million clients, overwhelmingly situated in provincial and semi-metropolitan regions, especially in Bihar and Uttar Pradesh.

As of March 31, 2023, Utkarsh's gross loan portfolio was Rs 13,957.11 crore, up from Rs 8,415.66 crore as of March 31, 2021. In a similar vein, deposits increased from Rs 7,507.57 crore to Rs 13,710.14 crore during the same time period, while disbursements increased from Rs 5,914.01 crore in the fiscal year 2021 to Rs 12,442.89 crore in the fiscal year 2023.

Following an effective Initial public offering, Utkarsh will join the positions of other little money banks, for example, AU Little Money Bank, Equitas Little Money Bank, Ujjivan Little Money Bank, and Suryoday Little Money Bank that are recorded on the stock trades.

The book-running lead managers for the IPO are Kotak Mahindra Capital Company and ICICI Securities.

What businesses say about Utkarsh Little Money Bank Initial public offering:

Direct ICICI: The IPO has received a "subscribe" rating from ICICI Direct, and their price target for each share is Rs 26. The business firm said that Utkarsh Little Money Bank has major areas of strength for a record of development and productivity, and it is strategically situated to profit from the development in the microfinance area.

One Angel: The IPO has been given a "buy" rating by Angel One, and their price target for each share is Rs 28. The brokerage firm stated that Utkarsh Small Finance Bank is well-managed and has a strong financial performance.

Sharekhan: Sharekhan has given a "buy in" rating to the Initial public offering, with a value focus of Rs 27 for every offer. According to the brokerage firm, Utkarsh Small Finance Bank is one of India's best small finance banks and has a lot of room for expansion.

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