Utkarsh IPO: Issue subscribed over 10 times on day 2 so far; retail investors steal the show

Retail investors responded enthusiastically to the issue on the second day of the subscription as well. Meanwhile, Non-Institutional Investors (NIIS), qualified institutional buyers (QIBs), and employees responded well to the IPO offer.

Retail investors portion was subscribed 28.35 times, NIIs portion was subscribed 17.59 times and employee portion was subscribed 6.98 times. While, qualified institutional buyers (QIBs) portion was subscribed 1.47 times.

The company has received bids for 1,28,81,44,800 shares against 12,05,43,477 shares on offer, at 13:39 IST, according to data from the BSE.

The retail investors’ portion received bids for 61,01,19,600 shares against 2,15,21,739 shares on offer for this segment.

The employees’ portions received bids for 1,51,77,000 shares against 21,73,913 on offer for this segment.

The non-institutional investors’ portion received bids for 56,78,92,800 shares against 3,22,82,608 on offer for this segment.

The QIBs’ portion received bids for 9,49,55,400 shares against 6,45,65,217 on offer for this segment.

Utkarsh IPO: Issue oversubscribed on day 1; retail portion booked over 13 times

The company has fixed the price band at ₹23 to ₹25 per equity share for the proposed initial public offer.

On Tuesday, July 11, Utkarsh Small Finance Bank raised ₹222.75 crore from 20 anchor investors. The allocation of 8.91 crore equity shares to anchor investors, at an upper price band of ₹25 per share, was finalised, the company stated in its exchange filing.

Aditya Birla Sun Life Mutual Fund (MF), Edelweiss MF, ICICI Prudential MF, Kotak Mahindra MF, Goldman Sachs, Massachusetts Institute of Technology Basic Retirement Plan Trust, and others were among the anchor investors.

Utkarsh Small Finance Bank IPO is entirely a fresh issue of equity shares aggregating up to ₹500 crore with no offer for sale (OFS) component, according to the red herring prospectus (RHP). The face value of each equity share is ₹10.

To improve its bank’s tier I capital base and meet future capital needs, the issue’s proceeds will be put to use. Its tier-1 capital base was ₹1,844.82 crore, or 18.25 percent, as of March 2023.

The book running lead managers of the public offering are ICICI Securities Ltd, and Kotak Mahindra Capital Company Ltd, whereas the registrar to the issue is KFin Technologies Ltd.

Utkarsh IPO: Should you subscribe to the issue? Here’s what brokerages say

Updated: 13 Jul 2023, 01:50 PM IST