Utkarsh SFB IPO subscription oversubscribed 22.46 times on final day so far

14 Jul 2023 , 11:16 AM

The maiden public offer by Utkarsh Small Finance Bank of Rs 500 crore has been receiving high demand from all the investor classes. The issue has received bids for 2,70,71,87,400 equity shares against 12,05,43,477 equity shares available for subscription by 11.15 AM on July 14. Click here to subscribe the IPO.

By 11.15 AM on the third day of bidding, the Utkarsh SFB IPO has received a subscription of multiple times, with the retail portion being oversubscribed by an impressive 46.97 times. In the NII (Non-Institutional Investor) category, the public issue has been subscribed 38.79 times, while in the QIB (Qualified Institutional Buyer) category, it has been subscribed 6.49 times. The portion reserved for eligible employees has been subscribed 11.33 times by the time.

At the upper price band, the company’s valuation stands at a price-to-book ratio of 1.39x, resulting in a post-issue market capitalization of Rs 2,740 crore. The company has achieved a commendable return on net worth of 20.22%.

Despite experiencing muted growth in the bottom lines during FY22 due to general market trends following the pandemic, Utkarsh SFB has maintained a healthy top-line growth, reporting a compound annual growth rate (CAGR) of 26% from FY21 to FY23. The net non-performing assets (NPAs) for the fiscal years FY21, FY22, and FY23 stood at 1.33%, 2.31%, and 0.39%, respectively.

Among its peers with a gross loan portfolio exceeding Rs 6,000 crore, the bank has recorded the third fastest growth in gross loan portfolio between fiscal 2019 and fiscal 2023.