Utkarsh Small Finance Bank Ltd IPO Timeline

Utkarsh Small Finance Bank Ltd IPO opens on 12-Jul-2023, and closes on 14-Jul-2023. The Utkarsh Small Finance Bank Ltd IPO bid date is from 12-Jul-2023 to 14-Jul-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Utkarsh Small Finance Bank Ltd IPO Opening Date 12-Jul-2023
Utkarsh Small Finance Bank Ltd IPO Closing Date 14-Jul-2023
Basis of Allotment 19-Jul-2023
Initiation of Refunds 20-Jul-2023
Credit of Shares to Demat 21-Jul-2023
Utkarsh Small Finance Bank Ltd IPO Listing Date 24-Jul-2023

Utkarsh Small Finance Bank Ltd IPO Lot Size

Utkarsh Small Finance Bank Ltd IPO lot size is 600 shares. A retail-individual investor can apply for up to 13 lots (7800 shares or 195000).

Application Lots Shares Amount
Minimum 1 600 ₹15000
Maximum 13 7800 ₹195000

Utkarsh Small Finance Bank Ltd IPO Details

Utkarsh Small Finance Bank Ltd IPO Date 12-Jul-2023 to 14-Jul-2023
Utkarsh Small Finance Bank Ltd IPO Face Value Shares of ₹10 per share
Utkarsh Small Finance Bank Ltd IPO Price ₹23 to ₹25 per share
Utkarsh Small Finance Bank Ltd IPO Lot Size 600
Issue Size Shares of ₹10 (aggregating up to ₹500 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹500 Cr)
Offer for Sale -
Issue Type Book Built Portion
Listing At BSE, NSE
QIB Shares Offered Not more than 64565217
Retail Shares Offered Not less than 21521739
NII (HNI) Shares Offered Not less than 32282608
Company Promoters Utkarsh Coreinvest Ltd.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 To be utilised towards Augmentation of the Bank's Tier-I Capital base to meet the Bank's future capital requirements

Company Financials

Utkarsh Small Finance Bank Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2024 23902.68 3578.81 497.63
03-2023 19117.29 2804.29 404.50
03-2022 15063.77 2033.65 61.46
Amount in ₹ Crore
  • Sound understanding of microfinance segment and presence in rural and semi-urban areas.
  • Growing deposits with focus on retail deposits.
  • Diversified distribution network with significant cross-selling opportunities.
  • Focus on risk management and effective operations.
  • Stable growth with cost efficient operational performance.
  • Leadership complementing its strengths.
  • The Bank is subject to stringent regulatory requirements and prudential norms of RBI and its inability to comply with such laws, regulations and norms may have an adverse effect on its business, results of operations, financial condition and cash flows.
  • After the completion of the Issue, its Promoter will continue to hold substantial shareholding in the Bank.
  • The bank is currently significantly dependent on its microbanking segment, particularly joint liability group ("JLG") loans, and any adverse developments in this segment could adversely affect its business, results of operations, financial condition and cash flows.
  • The Bank business is vulnerable to interest rate risk, and any volatility in interest rates or inability to manage interest rate risk could adversely affect its Net Interest Margins, income from treasury operations, business, financial condition, results of operations and cash flows.
  • The Bank Statutory Auditors have been debarred by the Reserve Bank of India from undertaking audit assignments for entities regulated by RBI for a period of two years with effect from April 1, 2022.
  • A significant portion of its advances in the microbanking segment are towards customers located in the states of Bihar and Uttar Pradesh, and any adverse changes in the conditions affecting the region can adversely impact its business, financial condition, results of operations and cash flows.
  • The bank has filed compounding applications on account of alleged non-compliance of the provisions of the Companies Act, 2013 relating to a public offering of securities on account of down-selling of NCDs allotted to an investor by the Bank, which may subject the Bank to, among other things, further regulatory actions.
  • The extent to which the recent coronavirus (COVID-19) pandemic impacts the Bank's business, cash flows, results of the operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted.
  • The bank has a limited operating history as an SFB and its future financial and operational performance cannot be evaluated on account of its evolving and growing scale of operations. Accordingly, the company future results may not be reflective of its past performance.
  • The Bank operations involve handling significant amounts of cash, making it susceptible to operational risks, including fraud, petty theft and embezzlement, which could harm the bank results of operations and financial position.
  • The bank has a continuous requirement of funds and its inability to access sources of funds in an acceptable and timely manner or any disruption in the access to funds would adversely impact its results of operations, financial condition and cash flows.
  • The bank is subject to inspections by regulatory authorities, including by the RBI. Non-compliance with RBI inspection/ observations or other regulatory requirements or any adverse observations from such regulators may have a material adverse effect on its business, financial condition, results of operation or cash flows.
  • The Banking companies in India, including it, will be required to report financial statements as per Ind AS in the future. However, its Promoter, Utkarsh CoreInvest Limited, currently reports its financial statements under Ind AS and as a result, the bank is required to prepare select Ind AS financial information for the limited purposes of consolidation by Utkarsh CoreInvest Limited. Differences exist between Ind AS and Indian GAAP, which may be material to the investors' assessment of its financial condition.
  • The bank is required to comply with certain restrictive covenants under its financing agreements. Any non-compliance may lead to, amongst others, accelerated repayment schedule and suspension of further drawdowns, which may adversely affect its business, results of operations, financial condition and cash flows.
  • The bank is undertake certain fee and commission-based activities and its financial performance may be adversely affected by an inability to generate income from such activities.
  • Its non-convertible debentures are listed on BSE, and the bank is subject to strict regulatory requirements with respect to such listed non-convertible debentures. Also, in the past, there were certain inadvertent delays by it in making certain disclosures and regulatory filings to BSE and its inability in the future to comply with or any delay in compliance with such laws and regulations may have an adverse effect on the bank business, results of operations, financial condition and cash flows. Additionally, the trading in its non-convertible debentures may be infrequent, limited or sporadic, which may affect its ability to raise debt financing in future.
  • The bank is dependent on its Key Managerial Personnel, and the loss of, or the company inability to attract or retain, such persons could adversely affect its business, financial condition, results of operations and cash flows.
  • The Bank operations could be adversely affected by strikes, work stoppages or increased wage demands by the bank employees or any other kind of disputes with its employees.
  • Certain of its Directors and Key Managerial Personnel are interested in the Bank in addition to the remuneration and reimbursement of expenses. Further, its Promoter is also interested in the Bank in addition to its shareholding.
  • The bank has not paid dividend in the past on its Equity Shares. Its ability to pay dividends in the future will depend on its earnings, financial condition, working capital requirements, capital expenditures, regulatory guidelines and restrictive covenants of its financing arrangements.
  • The bank experienced negative cash flow from operating activities in the past. If its do not maintain positive cash flow, the bank cannot assure you that its will be able to sustain the bank growth or achieve profitability in future periods.
  • The bank deposits depend on a limited number of customers and a loss of such customers could materially and adversely affect its deposit portfolio, funding sources, financial condition, results of operations and cash flows. Further, a significant portion of its deposits from such customers are from the states and union territory of Maharashtra, NCT of Delhi, Uttar Pradesh and Haryana and any adverse change in the economy of such states could have an adverse effect on its financial condition, results of operations and cash flows.
  • The value of its collateral may decrease or its may experience delays in enforcing collateral when borrowers default on their obligations, which may result in failure to recover the expected value of collateral security exposing it to potential loss.
  • A majority of its advances, including the bank microbanking loan portfolio, are unsecured and are not supported by any collateral that could help ensure repayment of the loan. If its unable to recover such advances in a timely manner or at all, its financial condition, results of operations and cash flows may be adversely affected.
  • The Bank business relies extensively on its information technology systems and any weakness, disruptions or failures in such systems, or breach of data, could adversely affect the Bank perations and reputation.
  • You will not, without prior RBI approval, be able to acquire Equity Shares if such acquisition would result in an individual or group holding 5% or more of its share capital or voting rights; you may not be able to exercise voting rights in excess of 26% of the total voting rights of its Bank.
  • The Bank inability to renew or maintain its statutory and regulatory permits and approvals required to operate the bank business may adversely impact its business, financial condition and results of operation.
  • The bank is exposed to operational and credit risks which may result in NPAs. If its unable to control the level of NPAs in the bank portfolio or if its unable to improve the bank provisioning coverage as a percentage of Gross NPAs, its business, financial conditions, results of operations and cash flows could be adversely affected.
  • The bank has recently introduced new products and services and its cannot assure you that such productsand services will be profitable in the future. Further, its may not be able to successfully diversify its product portfolio or enter into new lines of business, which may materially and adversely affect its business prospects and impact the bank future financial performance.
  • The Indian banking industry is very competitive and if its unable to compete effectively it would adversely affect its business, financial condition, results of operations and cash flows.
  • The RBI may remove any employee, managerial personnel or may supersede the Bank's Board of Directors in certain circumstances, which may materially affect the Bank's business, results of operations, and financial conditions.
  • An inability to effectively manage its growth and expansion may have a material adverse effect on its business prospects and future financial performance.
  • The bank has a high proportion of bulk deposits. A partial or complete withdrawal of such deposits by any of its customers could adversely affect the business, results of operations and financial condition.
  • The Bank and its Promoter are involved in certain legal proceedings, any adverse developments related to which could materially and adversely affect its business, reputation and cash flows.
  • The bank depends on its brand recognition. Negative publicity, failure to maintain and enhance awareness of its brand would adversely affect its ability to retain and expand its base of customers.
  • All the Banking Outlets are on leased premises and the bank may enter into new lease arrangements for additional Banking Outlets. Any inability on its part to identify suitable premises or enter into or renew lease agreements on terms acceptable to it, may have an adverse effect on its operations.
  • Weakness or failures of the Bank internal control system may cause significant operational errors, which may in turn materially and adversely affect its business.
  • The Bank business correspondents are responsible for, among other things, sourcing and servicing of customers for its loans on a non-exclusive basis. If these business correspondents prefer to promote the Bank competitors' microfinance loans or its agreements with them are terminated or not renewed it would adversely affect the Bank business, financial condition, results of operations and cash flows.
  • The Bank has in this Draft Red Herring Prospectus included certain non-GAAP financial measures and certain other selected statistical information related to its operations and financial performance. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the financial services industry, and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other financial services companies.
  • If the Bank risk management policies are ineffective, it could adversely affect its business, financial condition, results of operations and cash flows.
  • Any adverse developments in the segments its operate in, such as retail, wholesale, and housing, could adversely affect its business and results of operations.
  • The bank has, in the past, failed to make timely regulatory filings and there have been irregularities in certain regulatory filings made with the RoC under applicable law. Further, certain of its regulatory records are not traceable.
  • Any non-compliance with mandatory AML, KYC and CFT laws and regulations could expose it to liability and harm its business and reputation.
  • The Bank intellectual property rights may be subject to infringement or its may breach third party intellectual property rights. If the bank fail to successfully enforce the Bank intellectual property rights, its business, results of operations and cash flows would be adversely affected.
  • The Bank inability to grow the bank CASA deposits and CASA ratio may result in higher cost of deposits and impact its financial condition and cash flows.
  • The Bank insurance coverage may be inadequate to cover claims. If the bank incur substantial uninsured loss or loss that exceeds its insurance coverage, it could have a material adverse effect on its business, cash flows, results of operations and financial condition.
  • The bank is required to reduce its Promoter's shareholding in the Bank to 26% of its paid-up voting equity share capital in the long run. The bank cannot assure you that any required consent, approval, waiver or clarification will be received in a timely manner, or at all, to enable its Promoter to reduce its shareholding as required.
  • The Bank has issued Equity Shares during the preceding one year at a price that may be below the Issue Price.
  • The SFB model is relatively new to India, and such operations pose various business and financial challenges.
  • The bank may face cyber threats attempting to exploit its network to disrupt services to customers and/ or theft of sensitive internal data or customer information, which may cause damage to its reputation and adversely affect its business and financial performance.
  • The bank has certain contingent liabilities that have not been provided for in its financial statements, which, if they materialize, may adversely affect its results of operations, financial condition and cash flows.
  • The Bank Statutory Auditors have included emphasis of matters in the bank audited financial statements as of and for the years ended March 31, 2022, 2021 and 2020.
  • The bank failure to adapt to technological advancements that can potentially disrupt the banking industry could affect the performance and features of its products and services and reduce its attractiveness to customers. Further, the bank success depends on its ability to respond to new technological advances.
  • The Bank may face asset liability mismatches, which could affect the bank liquidity and consequently may adversely affect its operations and profitability.
  • Increasing regulatory focus on personal information protection could impact its business and expose it to increased liability.
  • Any downgrade of its credit ratings could adversely affect the bank business.
  • The bank has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest.
  • Certain Directors of the Bank may be associated with companies engaged in similar lines of business as the Bank. Any conflict of interest which may occur between its business and the activities undertaken by such companies, could adversely affect its business, prospects, results of operations and financial condition.
  • The bank utilize the services of certain third parties for its operations. Any deficiency or interruption in their services could adversely affect its business and reputation.
  • The bank operations depend on the accuracy and completeness of information about customers and counterparties which if inaccurate or materially misleading could adversely affect its business and results of operations. Further, high levels of customer defaults could adversely affect its business, results of operations, financial condition and cash flows.
  • The bank funding requirements and the proposed deployment of Net Proceeds have not been appraised and its management will have broad discretion over the use of the Net Proceeds.
  • The bank business activities are subject to seasonality, which may contribute to fluctuations in its results of operations and financial condition.
  • The Fresh Issue size may be reduced to the extent of the Pre-IPO Placement being considered by it.
  • The bank customers may engage in certain transactions in or with countries or persons that are subject to U.S. and other sanctions.
  • Industry information included in this Draft Red Herring Prospectus has been derived from an industry report prepared by CRISIL Limited which has been commissioned and paid for by it by the bank for such purpose.
  • Continue diversifying its retail asset portfolio
  • Grow retail deposits mix across geographies and customer segments to build stable funding source
  • Increase share of fee income and capitalize on cross-selling opportunities
  • Increasing use of technology and digital offerings for last mile delivery to customers

Utkarsh Small Finance Bank Ltd IPO Promoter Holding

Pre Issue Share Holding 84.75%
Post Issue Share Holding 0%

Utkarsh Small Finance Bank Ltd IPO Subscription Status (Bidding Detail)

The Utkarsh Small Finance Bank Ltd IPO is subscribed 101.91 times on Jul 14, 2023 05:00:00 PM. The public issue subscribed 72.11 times in the retail category, 124.85 times in the QIB category, and 81.64 times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) 124.85 81.64 72.11 16.58 101.91

Utkarsh Small Finance Bank Ltd IPO Prospectus

Utkarsh Small Finance Bank Ltd IPO Listing Date

Listing Date 21 Jul 23
BSE Script 543942
NSE Symbol UTKARSHBNK
Listing In BSE, NSE
ISIN INE735W01017
IPO Price ₹25
Face Value ₹10

Utkarsh Small Finance Bank Ltd IPO Registrar

KFin Techologies Ltd

Phone: +91 40 6716 2222/1800 345 4001
Email: utkarsh.ipo@kfintech.com
Website: www.kfintech.com

Utkarsh Small Finance Bank Ltd IPO Lead Manager(s)

  1. ICICI Securities
  2. Kotak Mahindra Capital Company Ltd

FAQs on Utkarsh Small Finance Bank Ltd IPO

Utkarsh Small Finance Bank Ltd IPO, which opens for subscription from 12-Jul-2023 to 14-Jul-2023 has an issue size of ₹500 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Utkarsh Small Finance Bank Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Utkarsh Small Finance Bank Ltd IPO Opens for subscription from 12-Jul-2023 to 14-Jul-2023.

The lot size of Utkarsh Small Finance Bank Ltd is 600 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹15000 and ₹195000 respectively.

Allotment date for Utkarsh Small Finance Bank Ltd is 19-Jul-2023 and refund of application amount (in case allotment is not received) will begin from 20-Jul-2023. If your allotment goes through, then shares will be credited in your Demat account by 21-Jul-2023.

The registrar for Utkarsh Small Finance Bank Ltd IPO is KFin Techologies Ltd . You can check your IPO allotment status on the registrar's website.

The shares of Utkarsh Small Finance Bank Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Power your investments with our smart trading platforms

mobilefooterimg
  • app_download_icon_img
    10 million+
    App downloads
  • 1_Click_icon_img
    1-Click
    Order Placement
  • higherreturns_icon_img
    2,203 Crore+
    Average Daily Turnover
Download App
App_Download_QRCode