Utkarsh Small Finance Bank Limited IPO
i. Utkarsh Small Finance SFB recorded the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among SFBs with Gross Loan Portfolio of more than ₹ 60 billion.
ii. Company Promoter, Utkarsh CoreInvest Limited, commenced its operations as a NBFC in Fiscal 2010 and was focused on providing microfinance to unserved and underserved segments and in particular in the states of Uttar Pradesh and Bihar. The company has its headquarters located in Varanasi, Uttar Pradesh and have over the years expanded its SFB operations strategically in States where they have been able to leverage the prior microfinance experience of Utkarsh CoreInvest Limited.
iii. Their Bank leverages the use of technology to provide transactional ease through internet and mobile banking and on-boarding convenience through digital on-boarding of customers with the use of handheld devices and as of March 31, 2023, 15,797 employees used handheld devices/ digital services for onboarding 573,619 savings account customers.
iv. They are led by their Managing Director and chief executive officer, Mr. Govind Singh, who has over 25 years of experience in the banking and financial services sector. The Board comprises of individuals having diverse experience across industries and their Independent Directors provide strategic guidance to help improve and grow its operations.
i. Sound understanding of microfinance segment and presence in rural and semi-urban areas
ii. Growing deposits with focus on retail deposits
iii. Diversified distribution network with significant cross-selling opportunities
Objects of the Utkarsh Small Finance Bank Limited IPO:
Utkarsh Small Finance Bank Limited IPO Details:
|Open Date:||Jul 12 2023|
|Close Date:||Jul 14 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||500 Cr.|
|Lot Size:||600 Shares|
|Issue Price:||₹ 23-25 Per Equity Share|
|Listing Date:||Jul 24 2023|
Promoters And Management:
Financials of Utkarsh Small Finance Bank Limited IPO:
|Net Interest Income||839||1061||1529|
|Profit Before Provisioning||419||512||838|
Comparison With Peers:
|Peers||Loan Book (cr)||Revenue FY23||BV||RoNW||PAT FY23||Gross NPA||P/E||P/B||Mkt Cap|
|Utkarsh SFB IPO||13,000||2,804||22.33||16.00%||405||3.23%||6.76||1.09||2725|
|Fusion Micro Finance||8,000||1,800||230.74||21.00%||387||3.46%||15||2.53||5,881|