Other listed SFB were subscribed Ujjivan SFB- 165.66 times, Au Financers SFB – 53.60 times, Suryoday SFB – 2.37 times, Equitas SFB – 1.95 times
by Suman Gupta
MUMBAI, JULY, 2023 : Varanasi-based Utkarsh Small Finance Bank Ltd recorded the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among SFBs with AUM of more than Rs 6,000 crore was subscribed 101.91 times on the final day on heavy bidding from Qualified Institutional Buyers and Non-Institutional Investors making it the second most subscribed IPO after Ujjivan Small Finance Bank.
According to the data available on the stock exchanges, at a price band of ₹23-25, the Offer received bids of 12,28,47,80,400 shares against the offered 12,05,43,477 equity shares. All the investor category had aggressively bid for the issue. The Qualified Institutional Buyer Portion was the most subscribed with a subscription of 124.85 times, followed by Non-Institutional Investors Portion with 81.64 times. Retail Portion was subscribed 72.10 times, whereas, the Employee Portion was subscribed 16.58 times.
Company Information
The Bank is promoted by Utkarsh CoreInvest Limited, which commenced its operations as a NBFC in Fiscal 2010 and focused on providing microfinance to unserved and underserved segments particularly in the states of Uttar Pradesh and Bihar. Utkarsh CoreInvest Limited received the RBI In-Principle Approval on October 7, 2015, to establish an SFB, following which it incorporated Utkarsh Small Finance Bank Limited as a wholly-owned subsidiary on April 30, 2016. Subsequent to the Bank obtaining the RBI Licence on November 25, 2016, to establish and carry-on business as an SFB, Utkarsh CoreInvest Limited transferred its business of providing microfinance, as a going concern to the Bank, which commenced its operations from January 23, 2017.
The bank operates throughout India and has a presence in 26 states and Union Territories, with 830 banking outlets and 15,424 employees as of March 31, 2023. Its primary focus is on rural and semi-urban areas. As of the same date, the bank serves a customer base of 3.59 million, encompassing both deposit and credit customers, predominantly located in rural and semi-urban areas, with Bihar and Uttar Pradesh accounting for 30.88% and 25.98% of its total Gross Loan Portfolio respectively, based on the location of the banking outlets.
The table below shows subscription data for all the categories of investors:
| Utkarsh Small Finance Bank Limited Last updated on 14 Jul 2023 | 05:00:00 PM |
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| Sr.No. | Category | No.of shares offered / reserved | No. of shares bid for | No. of times of total meant for the category |
| 1 | Qualified Institutional Buyers (QIBs) | 6,45,65,217 | 8,06,12,60,400 | 124.85 |
| 1(a) | Foreign Institutional Investors (FIIs) | – | 2,20,73,60,400 | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | 2,99,08,47,000 | – |
| 1(c) | Mutual Funds | – | 55,24,05,000 | – |
| 1(D) | Others | – | 2,31,06,48,000 | – |
| 2 | Non Institutional Investors(NIIS) | 3,22,82,608 | 2,63,56,61,400 | 81.64 |
| 2.1 | Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) | 2,15,21,739 | 1,81,82,26,800 | 84.48 |
| 2.1(a) | Corporates | – | 7,19,61,600 | – |
| 2.1(b) | Individuals (Other than RIIs) | – | 1,52,93,54,400 | – |
| 2.1(c) | Others | – | 21,69,10,800 | – |
| 2.2 | Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) | 1,07,60,869 | 81,74,34,600 | 75.96 |
| 2.2(a) | Corporates | – | 21,42,000 | – |
| 2.2(b) | Individuals (Other than RIIs) | – | 71,74,03,200 | – |
| 2.2(c) | Others | – | 9,78,89,400 | – |
| 3 | Retail Individual Investors (RIIs) | 2,15,21,739 | 1,55,18,14,200 | 72.10 |
| 3(a) | Cut Off | – | 1,31,94,91,800 | – |
| 3(b) | Price Bids | – | 23,23,22,400 | – |
| 4 | Employee Reserved | 21,73,913 | 3,60,44,400 | 16.58 |
| 4(a) | Employee (Cut off) | – | 3,22,83,000 | – |
| 4(b) | Employee (Price) | – | 37,61,400 | – |
| 5 | Reservation PortionShareholder | – | – | – |
| 5(a) | RPS (Cut off) | – | – | – |
| 5(b) | RPS (Price) | – | – | – |
| Total | 12,05,43,477 | 12,28,47,80,400 | 101.91 | |
BSE + NSE Cumulative Demand Live Link
https://www.bseindia.com/markets/publicIssues/CummDemandSchedule.aspx?ID=6197&status=L
