Utkarsh Small Finance Bank IPO

Utkarsh Small Finance Bank, an SFB in India, experienced the second-fastest AUM growth between Fiscal 2019 and Fiscal 2022, Among SFBs with AUM of more than 50 billion. (Source: Report from CRISIL) Utkarsh Small Finance Bank IPO will hit the stock market in November 2022.

About Utkarsh Small Finance Bank

Utkarsh Small Finance Bank is a proud solitary small finance bank from Varanasi. It was established in 2009 with the mission to financially empower the low income group, it has reached new heights today.

The micro finance business was transformed into a bank, which began its journey on 30 April 2016 with its incorporation. The bank applied for a banking license to the RBI and thereafter, the final license was obtained from the RBI on 25 November 2016.

The objective of the Utkarsh Small Finance Bank is ‘Ummed’ – which gives their clients hope to fulfill their dreams and needs. They have an initiative called Utkarsh Welfare Foundation which works in the areas of financial literacy and inclusion besides health initiatives.

Footprints

As of March 31, 2022, Utkarsh Small Finance Bank extended operations throughout India and is present in 22 States and Union Territories with 686 Banking Outlets and 12,617 workers.

They have increased their service area over time to 200 districts across 22 states. With 600+ banking locations, they now boast a clientele of over 4 million pleased consumers. Their operations are focused in rural and semi-urban areas of india.

With their accessible & affordable banking services, they hope to inspire people who do not already bank in a formal setting to do so in today’s technologically advanced world.

Their primary goal is to deliver services that are process-driven, technology-enabled, and people-centered, creating dependable, scalable, and long-lasting institutions that support socioeconomic development.

History

On September 22, 2017, Prime Minister Narendra Modi introduced comprehensive banking services to enable them become the most dependable financial services supplier.

The lender, which has its headquarters in Varanasi, granted 2.22 Crores in new stock to its promoter Utkarsh Coreinvest Limited in FY19–20 at a price of Rs. 27 per share.

Their headquarters are in Varanasi, UP, & they have carefully expanded their SFB activities over the years in States where they have been able to take use of Utkarsh CoreInvest Limited’s existing microfinance experience.

The Mix Star (Socially Transparent and Responsible) Award, the Scorch (Gold) -2016 Award Inclusive Insurance, the CIMSME’s MSME Banking Excellence Award, & the Microfinance India Organization of the Year (Small & Medium Category) Award recognized their achievements.

Utkarsh Small Finance Bank IPO

Utkarsh Small Finance Bank Limited, headquartered in Varanasi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 500 Crore on 29 July 2022.

The offer includes a fresh issue of INR 500 Crore and there is no offer for sale (OFS) by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-22	31-Mar-21	31-Mar-20
Total Assets		15,063.77	12,137.91	9,404.32
Total Revenue		2,033.65	1,705.84	1,406.18
Profit After Tax		61.46	111.82	186.74

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	2.49	2.49	3
Financial Year 2021	1.46	1.46	2
Financial Year 2022	0.70	0.70	1
Weighted Average	1.25	1.25

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

Utkarsh Small Finance Bank limited feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:

• Good knowledge of the microfinance market and its presence in semi-urban and rural areas.
• Deposit growth with a focus on consumer deposits.
• A network of distribution that is diverse and offers plenty of cross-selling opportunities.
• Ensure effective risk management and operations.
• Stable expansion combined with effective operational performance.
• leadership that enhances their advantages.

Utkarsh Small Finance Bank Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Equitas Small Finance Bank Limited	19.48
2	10	Ujjivan Small Finance Bank Limited	NM**
3	10	Credit Access Grameen Limited	42.27
4	10	Spandana Sphoorty Financial Limited	38.37
5	10	Bandhan Bank Limited	347.12
6	10	AU Small Finance Bank Limited*	32.64
7	10	Suryoday Small Finance Bank	NM**

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on July 26, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Utkarsh Small Finance Bank IPO Details

IPO Opening Date	December 2022
IPO Closing Date	December 2022
Issue Type	Book Built
Face Value	10 per  share
IPO Price	0 to 0 per equity share
Market Lot	0
Min Order Quantity	0
Listing At	BSE, NSE
Issue Size	500 Cr.
Fresh Issue	500 Cr.
Offer for Sale	0

Utkarsh Small Finance Bank IPO Tentative Date

Utkarsh Small Finance Bank IPO open date is December 2022, and the close date is December 2022. The issue may list in December 2022.

IPO Open Date	December 2022
IPO Close Date	December 2022
Basis of Allotment Date	December 2022
Initiation of Refunds	December 2022
Credit of Shares to Demat Account	December 2022
IPO Listing Date	December 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimal level of 1 lot, based on availability, for every shareholder.

Utkarsh Small Finance Bank Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Utkarsh Small Finance Bank IPO.

Utkarsh Small Finance Bank IPO GMP

Utkarsh Small Finance Bank Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Utkarsh Small Finance Bank Limited IPO Review

Utkarsh Small Finance Bank Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Utkarsh Small Finance Bank IPO is good or bad.

Utkarsh Small Finance Bank Limited IPO Risk

• Their Bank is subject to strict regulatory standards & prudential norms set by the RBI, and if they are unable to comply, it could have a negative impact on their business.
• Their Promoter would keep a sizeable stake in their Bank even after the Issue is finished.
• As a result of their existing reliance on the microbanking sector, particularly joint liability group (“JLG”) loans, any unfavorable changes in this sector could have a negative impact on their operations.
• The operations of their bank are subject to interest rate risk, & any changes in interest rates or an inability to control interest rate risk could have a negative impact on their net interest margins, income from treasury operations, results of operations, & cash flows.

Other Threats

1. The Reserve Bank of India has prohibited their Statutory Auditors from performing audit assignments for firms that it regulates for a period of two years beginning on April 1, 2022.
2. Any unfavorable changes in the circumstances impacting the region could negatively effect their business because a sizable amount of their advances in the microbanking segment are directed toward major customers based in the states of Bihar and Uttar Pradesh.
3. Future events, which are highly unclear and impossible to anticipate, will determine how the current corona virus (COVID- 19) epidemic affects their Bank’s operations, cash flow, operational results, and financial situation.
4. In the future, banking companies in India, like ours, would have to report financial accounts in accordance with Ind AS.

Utkarsh Small Finance Bank Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Utkarsh Small Finance Bank IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Utkarsh Small Finance Bank Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
November 2022	1
November 2022	2
November 2022	3

Utkarsh Small Finance Bank Limited Management

Their managing director and chief executive officer, Mr. Govind Singh, has over 25 years of banking and financial services industry experience.

Their Board is made up of people with a variety of experience in different industries, and Independent Directors offer strategic advice to help them develop and expand their operations.

Their executive team has extensive knowledge in the banking and financial services sectors. One of the institutional investors supporting their promoter, Utkarsh CoreInvest Limited, an NBFC-CIC-NDSI in India, is British International Investment plc (previously known as CDC Group plc).

Their CRAR was 22.19% (Tier I capital of 19.41%), 21.88% (Tier I capital of 19.98%), and 21.59% (Tier I capital of 18.08%), correspondingly, as of March 31, 2020, 2021, and 2022.

Utkarsh Small Finance Bank IPO Promoters

• Utkarsh CoreInvest Limited

Promoter Holding

Pre Issue Share Holding	84.79%
Post Issue Share Holding