Utkarsh Small Finance Bank makes a strong D-St debut; stock list with a premium of 60% at Rs 40

Utkarsh Small Finance Bank (SFB) made a strong debut at Dalal Street on Friday as the private lender was listed at Rs 40 on the National Stock Exchange (NSE), suggesting a premium of Rs 60 per cent over its issue price of Rs 25. However, the stock kicked-off its maiden trading session with a premium of 60 per cent at Rs 39.95 on the BSE.

A day before its listing, Utkarsh SFB was commanding a strong premium of Rs 15 apiece in the grey market over its issue price, suggesting a listing pop of 60 per cent to the investors. However, the actual listing has been in-line to the expectation of the street.

Utkarsh Small Finance Bank raised Rs 500 crore from its primary stake sale as the issue was sold in the range of Rs 23-25 apiece with a lost size of 600 equity shares. The issue was entirely a fresh sale of 20 crore equity shares, which was open for subscription between July 12-14.

The issue was overall subscribed a whopping 110.77 times. The quota for qualified institutional buyers (QIBs) saw 124.85 times bidding, while the allocation for non-institutional investors (NIIs) fetched 81.64 times bids. The portion for retail investors was booked 72.10 times and the employee category got 16.58 times subscription.

Incorporated in 2016, Utkarsh Small Finance Bank is a small finance bank in India, which recorded the second fastest AUM growth in the years financial year 2018-19 and financial year 2021-2022. The private lender has an asset under management (AUM) of more than 6,000 crore.

Varanasi-headquartered Utkarsh Small Finance Bank has operations across 26 states and Union Territories with 830 banking outlets and 15,424 employees as of March 31, 2023. It had a 3.59 million customer base majorly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh.

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