Utkarsh Small Finance Bank’s Subscription Opens Today | Entrepreneur

Utkarsh Small Finance Bank, a Varanasi-based small finance bank, offers affordable banking services such as loans, accounts, deposits and investments pan-India. It opened its initial public offering today and will conclude on July 14.

USFB is aiming to raise INR 500 crore through its IPO and will get listed on the BSE. The IPO will consist fully of fresh issues with a face value of INR 10 and an offer price of INR 23-25.

On Day 1, 38,95,08,000 bids of equity shares were made against the offered 12,05,43,477. The qualified Institutional Buyers (QIBs) portion saw 24,76,800 bids against 6,45,65,217, Non-Institutional Investors(NIIS) portion saw 23,22,84,600 against 3,22,82,608, and the Employee Reserved portion saw 55,08,600 bids against 21,73,913. Retail Individual Investors (RIIs) saw the highest number of bids against the offered number, 26,97,86,400 against 2,15,21,739. The data is as of 04:27 PM providing by BSE.

On Tuesday, USFB raised INR 222.75 crore from 20 anchor investors and allocated 8.91 crore equity shares with an upper price band of INR 25. Its anchor list included the likes of Aditya Birla Sun Life Mutual Fund (MF), Goldman Sachs, Massachusetts Institute of Technology Basic Retirement Plan Trust, Edelweiss MF, ICICI Prudential MF, and Kotak Mahindra MF.

Fifty-seven per cent of USFB’s advances are in the micro-banking segment catering to customers located in Bihar and Uttar Pradesh. It had a turnover of INR 25,050 million in FY22-23.

ICICI Securities and Kotak Mahindra Capital Company are the book-running lead managers for the IPO, with KFIN TECHNOLOGIES LIMITED being the IPO registrar.

“The funds raised from the fresh issue would be utilized to augment its Tier 1 capital base,” shared USFB’s document disclosing IPO details.