The allotment for the initial public offer (IPO) of Utkarsh Small Finance Bank is likely to be finalised today. Investors can check their allotment status on the issue's registrar KFin Technologies' website as well as on BSE.
The ₹500 crore issue had received a robust response from the investors during the three-day bidding process, which was open between July 12 and 14 with a price band in the range of ₹23-25 per share.
The IPO was subscribed 110.77 times. It received bids for 1,228 crore shares against the issue size of 12 crore units.
The portion reserved for qualified institutional bidders was booked 135.71 times, while that of the non-institutional investors' was subscribed 88.74 times. Meanwhile, the quota reserved for retail investors was subscribed 78.38 times and the employee portion fetched 18.02 times.
GMP: Ahead of the IPO, the company's shares in the grey market are trading at a healthy premium of ₹15, which has been the same since July 11.
However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.
The shares of Utkarsh Small Finance Bank are likely to be listed on the bourses on July 24, 2023.
Here's how you can check the allotment status:
1) Go to the website.
2) Select ‘Equity’ and then from the dropdown, select the issue name (Utkarsh Small Finance Bank).
3) Enter your application number and PAN card number.
4) Click on the "Search" button.
In a similar way, you can also check on its registrar's website
1) Go to the website of KFin Technologies.
2) Click on ‘Company Selection’ and then select the IPO name (Utkarsh Small Finance Bank).
3) Now, enter your PAN, application number, DP / Client ID or account number / IFSC.
4) Click on ‘Search’.
The status will only appear after allotment if the details are entered correctly. In the case of non-allotment, the blocked amount will be refunded to your bank account. Investors who do not get allotment in the IPO are likely to see the refunds on Thursday, July 20 while those who have been allotted will see them getting credited in their Demat accounts by Friday, July 21.
This would be the fifth small finance bank listed on the BSE and NSE, after AU Small Finance Bank, Suryoday Small Finance Bank, Ujjivan Small Finance Bank, and Equitas Small Finance Bank.
The offer is entirely constituted of a fresh issue of equity shares worth ₹500 crore. Post-issue, the promoter and promoter group stake in the company will decline to 68.28 percent from 84.75 percent currently. The net proceeds from the issue will be utilised towards augmenting its Tier-I capital base to meet its future capital requirements.
Most brokerage firms had assigned a ‘subscribe’ rating to the issue on the back of attractive pricing, strong balance sheet, and robust business fundamentals.
Utkarsh Small Finance Bank recorded the second fastest AUM growth between fiscal 2019 and fiscal 2022 among SFBs with an AUM of more than ₹5000 crore. After receiving in-principal approval from the Reserve Bank of India (RBI) in October 2015 to establish a small finance bank, promoter Utkarsh CoreInvest incorporated Utkarsh Small Finance Bank as a wholly-owned subsidiary in April 2016, which commenced its operations in January 2017.
The Varanasi-headquartered lender has operations across 26 states and Union Territories with 830 banking outlets.