Utkarsh Small Finance Bank makes stellar debut, opens 60% higher over IPO price
The share sale of Utkarsh Small Finance Bank was subscribed 101.91 times on the last day of the subscription.
- Republic Business
- 2 min read
Shares of Utkarsh Small Finance Bank made a stellar stock market debut on Friday, July 21. The stock opening at Rs 40 per share on the National Stock Exchange (NSE) with a premium of 60 per cent and at Rs 39.95 on the BSE, with a premium of 59.8 per cent over the upper end of the IPO price range.
This comes after share sale via initial public offering (IPO) of Utkarsh Small Finance Bank which proved to be a huge hit among investors, as it got subscribed 101.91 times on the last day of the subscription on July 14.
As per the regulations from the RBI, small finance banks need to list their equity shares on the equity markets within three years of hitting a net worth of Rs 500 crore.
About the IPO
According to data from NSE, the initial share sale of the IPO received bids for 1,228.46 crore shares, compared to the 12.05 crore shares on offer.
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Pie of shares set aside for Qualified Institutional Buyers (QIBs) was subscribed 124.85 times, shares set aside for non-institutional investors received 81.64 times the subscription and portion set aside for Retail Individual Investors' (RIIs) quota was subscribed 72.10 times.
Subscriptions
The company's IPO was subscribed 4.73 times on the first day of subscription on July 12 and 16.20 times on the second day of offer on July 13. The fresh issue of the IPO was of up to Rs 500 crore, with a price range of Rs 23-25 per share.
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The bank said that it had raised Rs 223 crore from anchor investors. Proceedings from the fresh issue would be utilised to augment its tier-1 capital base to meet its future capital requirements.
About the bank
Utkarsh Small Finance Bank started operations in 2017. It has a wide range of deposit products, including savings accounts, salary accounts, current accounts, locker facilities, and recurring and fixed deposits.
Utkarsh would join the league of other small finance banks post-IPO, including AU Small Finance Bank, Equitas Small Finance Bank, Ujjivan Small Finance Bank, and Suryoday Small Finance Bank, on its listing on the BSE and the NSE.