Don’t Miss Out! Utkarsh Small Finance Bank’s Rs 500-Crore IPO Subscription Opens Soon
![Don't miss out! Utkarsh small finance bank's rs 500-crore ipo subscription opens soon 1 Utkarsh small finance bank's rs 500-crore ipo subscription opens soon in 2023](https://www.gmpipo.com/wp-content/uploads/Utkarsh-Small-Finance-Banks-Rs-500-Crore-IPO-Subscription-Opens-Soon-IN-2023.png)
Utkarsh Small Finance Bank’s IPO provides investors with a chance to be a part of a thriving financial institution’s growth story. With its strong foothold in rural and semi-urban regions and impressive financial performance, the bank is poised for further expansion. The subscription period for the IPO commences on July 12 and is anticipated to attract considerable interest from investors who recognize the bank’s potential in the evolving financial landscape.
Utkarsh Small Finance Bank IPO Details
Utkarsh Small Finance Bank is preparing to launch its initial public offering (IPO) valued at Rs 500 crore. The subscription period for the IPO will commence on July 12 and conclude on July 14. This IPO will play a significant role in enhancing the bank’s tier I capital base and meeting its future capital needs. Investors will closely monitor the bank’s IPO as the funds raised will be vital for its growth aspirations.
The IPO process for Utkarsh Small Finance Bank will kick off with anchor investors placing their bids on July 11. The allotment of shares is scheduled to occur on July 19, and the shares will be credited to the demat accounts of the allottees on July 20. The bank’s stock is projected to be listed on the exchanges on July 24, enabling investors to partake in the bank’s growth journey.
Utilization of Proceeds
The funds raised through the IPO will be used to enhance Utkarsh Small Finance Bank’s tier I capital base, ensuring it meets its future capital requirements. As of March 2023, the bank’s tier-1 capital base was Rs 1,844.82 crore, accounting for 18.25 percent. This capital infusion will bolster the bank’s financial position and provide support for its expansion strategies.
Business Operations and Financial Performance
Established in 2016, Utkarsh Small Finance Bank commenced its operations in 2017 and offers a comprehensive range of deposit products, including savings accounts, salary accounts, current accounts, recurring and fixed deposits, and locker facilities. With a network of 830 banking outlets and 15,424 employees serving 3.59 million customers, the bank has a significant presence in rural and semi-urban areas across 26 states and Union Territories, particularly in Bihar, Uttar Pradesh, and Jharkhand.
For the fiscal year 2022-23, Utkarsh Small Finance Bank reported an impressive net profit of Rs 404.50 crore, a substantial increase from Rs 61.46 crore in the previous year. The bank’s total income for the fiscal stood at Rs 2,804.29 crore, compared to Rs 2,033.65 crore the previous year. Its gross loan portfolio expanded to Rs 13,957.11 crore, and total deposits reached Rs 13,710.14 crore. The bank also exhibited improvements in asset quality, with gross NPAs declining to 3.75 percent and net NPAs decreasing to 1.33 percent.