Utkarsh Small Finance Bank shares entered the listing space with a bang on Friday, July 21. The Utkarsh Small Finance Bank IPO — to raise up to Rs 500 crore — concluded last week with a subscription of almost 102 times the shares on offer.
Utkarsh Small Finance Bank shares made a strong debut in the secondary market on Friday, beginning their journey at Rs 40 apiece on BSE — a premium of 59.8 per cent over the upper end of the IPO price range. On NSE, the stock opened at Rs 39.4 apiece, a premium of 57.6 per cent. The listing was in line with market wizard Anil Singhvi’s expectations.
The market debut of Utkarsh Small Finance Bank shares comes after the lender’s initial public offer (IPO), to raise up to Rs 500 crore, concluded last week with a robust response from investors. The IPO of Utkarsh SFB — a Varanasi, Uttar Pradesh-based small finance bank — comprised fresh issuance of shares.
EDITOR’S TAKE | Invest for long term
Zee Business Managing Editor Anil Singhvi, who recommended applying for the Utkarsh Small Finance Bank IPO for “big listing gains”, suggests investors buy the lender’s shares from a long-term perspective. He has identified the following key points about the small finance bank for investors:
Positive
- Promoters’ strong background
- Huge growth opportunity
- Attractive valuation
Negative
- Cost of funds higher than peers
- Asset quality not stable
- Profit jumped just before the IPO
Key details about the Utkarsh SFB IPO:
The IPO opened for subscription on July 12 and closed on July 14. Under the IPO, potential investors could bid for Utkarsh Small Finance Bank shares in a range of Rs 23-25 apiece in multiples of 600, translating to Rs 13,800-15,000 per lot.
At the end of the three-day bidding process, the IPO received bids for 1,228.5 crore shares as against the 12.1 crore shares on offer, marking an overall subscription of 101.9 times.
Read More:-ITR Filing Errors: Wrong Bank Account Details Entered In ITR? Here’s How To Correct It
Here’s how different investors responded to the issue:
| Category | Reservation | Subscription (No. of times the shares on offer) |
| Qualified institutional buyers | Up to 75% | 124.9 |
| Non-institutional investors | Up to 15% | 81.6 |
| Retail investors | 10% | 72.1 |
| Total | 100% | 101.9 |
Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit OfficeNewz.com.
