Utkarsh SFB IPO to open on July 12 to raise Rs 500 crore

7 Jul 2023 , 12:35 PM

Utkarsh Small Finance Bank’s Rs 500 crore initial public offering (IPO) is set to open on July 12 and close on July 14, with the anchor book opening on July 11.

The allotment for Utkarsh Small Finance Bank’s IPO is anticipated to take place on July 19, with the shares credited to the demat accounts of the allottees on July 20. The stock is expected to be listed on the exchanges on July 24.

The net proceeds from the IPO will be utilized by Utkarsh Small Finance Bank Limited to strengthen its Tier-1 capital base and meet future capital requirements. Additionally, the funds will be used to cover expenses related to the IPO.

Initially, the Varanasi-based bank had filed a draft red herring prospectus (DRHP) in July 2021 to raise Rs 1,350 crore through a combination of a new issue worth Rs 750 crore and an offer for sale (OFS) of Rs 600 crore by its promoter Utkarsh Coreinvest. However, the bank later re-filed the DRHP with SEBI, reducing the issue size by 63% to raise Rs 500 crore through the IPO.

Established in 2016, Utkarsh Small Finance Bank began its operations in 2017. The bank offers a range of deposit products, including savings accounts, salary accounts, current accounts, recurring deposits, fixed deposits, and locker facilities. With 830 banking outlets and 15,424 employees, the bank serves 3.59 million customers primarily located in rural and semi-urban areas across 26 states and Union Territories, with a strong presence in Bihar, Uttar Pradesh, and Jharkhand.

ICICI Securities and Kotak Mahindra Capital are the merchant bankers to the IPO and Kfin Technologies Limited is the registrar.