New Delhi: Utkash Small Finance Bank (SFB) announced its Initial Public Offering (IPO), which will open for subscription on 12th July. The price band has been fixed at Rs 23-25; The lower-upper price band is 2.3-2.5 times of the face value of the equity shares.
Through the initial public offering, the bank aims to raise Rs 500 crore, which comprises only a fresh issue portion. The offer has reserved up to 1 per cent of the issue size for its employees, which is equivalent to Rs 5 crore or 20 lakh shares.
The net proceeds will be used to augment its Tier-I capital base to meet future capital requirements, in addition to issue expenses.
The minimum issue size has been set at 600 shares, which means retail investors can issue shares for a minimum amount of Rs 15,000 per lot and their maximum investment for 13 lots at the upper band will be Rs 1.95 lakh.
Up to 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for high net worth individuals and the remaining 10 per cent for retail investors.
Utkarsh SFB, headquartered in Varanasi, was established in 2016; Started its operations in 2017. The bank offers services like savings accounts, salary accounts, recurring and fixed deposits with locker facilities.
The banking company operates across 26 states and union territories with 830 banking outlets and 15,424 employees by March 2023. The bank has a customer base of 3.59 million who mainly comes from rural and semi-urban areas of Uttar Pradesh and Bihar.