Utkarsh Small Finance Bank
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Jul 2023 – 14 Jul 2023
- Listing date
- 21 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹25 per share
- Lot size
- 600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹500 Cr
- Market cap at offer price
- ₹2,740 Cr
- Promoter holding
- 84.75% → 69.28% pre-issue → post-issue
- ISIN
- INE735W01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Utkarsh Tower, NH 31 (Airport Road), Sehmalpur, Kazi Sarai, Harhua, Uttar Pradesh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 8,91,00,000 | — | — |
Application size
Minimum 600 shares per lot, in multiples, at ₹25
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 600 | ₹15,000 |
| Retail (max) | 13 | 7,800 | ₹1,95,000 |
| S-HNI (min) | 14 | 8,400 | ₹2,10,000 |
| S-HNI (max) | 66 | 39,600 | ₹9,90,000 |
| B-HNI (min) | 67 | 40,200 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.52 | — |
| P/E (×) | 5.53 | — |
| Market cap | — | ₹2,740 Cr |
Key performance indicators
- Return on net worth
- 20.22%
- Debt / equity
- 8.03
- NAV per share
- ₹22.33
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Utkarsh Small Finance Bank
Utkarsh Small Finance Bank Limited is an SFB that commenced operations on January 23, 2017, following the transfer of microfinance business from its promoter, Utkarsh CoreInvest Limited (formerly Utkarsh Micro Finance Limited). As of March 31, 2023, the Bank operates 830 banking outlets primarily in rural and semi-urban areas, with a significant presence in Bihar (30.88% of loan portfolio) and Uttar Pradesh (25.98% of loan portfolio). The Bank reported a Gross Loan Portfolio of ₹139,571 million and total deposits of ₹137,101 million as of March 31, 2023, with net profit of ₹4,045 million. The Bank's business model focuses on financial inclusion through microbanking loans via joint liability groups (66.03% of loan portfolio), supplemented by retail loans (10.99%), wholesale loans (11.08%), and housing loans (3.72%). It generates revenue primarily through net interest income (₹15,290 million in FY2023) and fee-based services.
Company Analysis
from RHPUtkarsh Small Finance Bank Limited is an India-based small finance bank operating in rural and semi-urban areas, providing microbanking loans, retail loans, wholesale loans, and deposit products across 22 states and 4 union territories.
Utkarsh Small Finance Bank Limited is an SFB that commenced operations on January 23, 2017, following the transfer of microfinance business from its promoter, Utkarsh CoreInvest Limited (formerly Utkarsh Micro Finance Limited). As of March 31, 2023, the Bank operates 830 banking outlets primarily in rural and semi-urban areas, with a significant presence in Bihar (30.88% of loan portfolio) and Uttar Pradesh (25.98% of loan portfolio). The Bank reported a Gross Loan Portfolio of ₹139,571 million and total deposits of ₹137,101 million as of March 31, 2023, with net profit of ₹4,045 million. The Bank's business model focuses on financial inclusion through microbanking loans via joint liability groups (66.03% of loan portfolio), supplemented by retail loans (10.99%), wholesale loans (11.08%), and housing loans (3.72%). It generates revenue primarily through net interest income (₹15,290 million in FY2023) and fee-based services.
Objects of the Issue
- Augmenting the Bank's Tier-1 capital base to meet future capital requirements ₹4,546.14 million p.101
Issue Structure
- Total Issue
- ₹5,000 million (200,000,000 Equity Shares of face value ₹10 each at Issue Price of ₹25 per share)
- Fresh Issue
- ₹5,000 million (200,000,000 Equity Shares)
- Offer for Sale
- Not Applicable
- Price Band
- ₹23 to ₹25 per Equity Share (Floor Price ₹23, Cap Price ₹25)
- Lot Size
- Bid Lot: 600 Equity Shares and in multiples of 600 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The Bank earns revenue primarily through net interest income from its lending portfolio (advances of ₹130,688 million as of March 31, 2023) and deposits (₹137,101 million). Net interest margin improved to 9.57% in FY2023. Additional revenue comes from commission, exchange and brokerage (₹853 million in FY2023, 3.04% of total income) and miscellaneous income including banking fees and insurance distribution (₹2,140 million in FY2023). The Bank relies on deposit mobilization and refinancing for funding, with cost of funds at 6.96% in FY2023. Operationally, the Bank employs 15,424 employees across 830 banking outlets.
Business Segments
SWOT Analysis
- • Rapid loan portfolio growth among SFBs(p.15)
- • High provision coverage ratio(p.15)
- • Focus on underserved markets(p.15)
- • Growing and diversified deposit base(p.48)
- • Expansion of business footprint(p.55)
- • Concentration in Bihar and Uttar Pradesh(p.37)
- • Dependence on limited customer base for deposits(p.32)
- • High concentration in bulk deposits(p.33)
- • Significant portion of unsecured loans(p.40)
- • History of losses and profitability volatility(p.31)
- • High employee attrition(p.31)
- • Growth in SFB sector(p.15)
- • Expansion into new geographies(p.55)
- • Increasing digital adoption(p.55)
- • Diversification of loan portfolio(p.55)
- • Financial inclusion focus(p.15)
- • Regional economic downturn risk(p.37)
- • NPA and credit quality deterioration(p.44)
- • Interest rate and market volatility(p.45)
- • COVID-19 pandemic impacts(p.46)
- • Regulatory compliance requirements(p.42)
- • Competitive pressure from organized sector(p.54)
- • Regulatory debarment of previous auditor(p.27)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Utkarsh CoreInvest Limited | Promoter | 84.75% | 69.28% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.