Utkarsh Small Finance Bank IPO: GMP, subscription status, apply or not?

Utkarsh Small Finance Bank IPO GMP today

As mentioned above, Utkarsh Small Finance Bank IPO grey market premium (GMP) today is ₹15, which is around 60 per cent higher from Utkarsh Small Finance Bank IPO price band of ₹23 to ₹25 per share. They said that ever since Utkarsh Small Finance Bank shares made debut in the unlisted stock market, they have gone strong to stronger since then. Observers said that major reason for strong response to the public issue by grey market is positive sentiments on Dalal Street and strong response by investors in first two days of bidding. They said that primary market has delivered strong returns to the investors and this could also be a reason for strong response by investors to the Utkarsh Small Finance Bank IPO. They said that much will depend upon the kind of listing Senco Gold IPO gets. In case, it manages to repeat the performance of ideaForge IPO and Cyient DLM IPO listings, then grey market may become further bullish on Utkarsh Small Finance Bank IPO.

Utkarsh Small Finance Bank IPO subscription status

After day two of bidding, retail portion of the public issue was most subscribed with a subscription of 36.66 times, followed by Non-Institutional Investors segment getting subscribed to 27.72 times. Employee Portion with a subscription of 8.48 times, whereas, Qualified Institutional Buyer Portion was subscribed 3.88 times.

Apply or not?

Giving ‘subscribe for long term’ tag, Anand Rathi report said, “USFB is one of the leading small finance banks and has posted decent financial performance. Although, SFB’s future prospects hinge on the monetary policy of RBI and the Government of India. The bank’s ability to provide their products and services in a cost-efficient manner is among their core strengths and their cost-to-income ratio was the lowest among SFBs with Gross Loan Portfolio of more than ₹60 billion,” adding, “We believe that company is fairly priced and recommend a “Subscribe- Long term” rating to the IPO.”

Giving ‘buy’ tag to Utkarsh Small Finance Bank IPO, Nirmal Bang report said, “Considering that the micro finance industry has come out of severe crisis over 2020-22, with most of the bad loans having weeded out of the system, we expect growth and healthy profitability to resume for the sector as well as for Utkarsh. We recommend subscribing to the issue.”

Some more brokerages like SBI Securities, Geojit Financial Services, LKP Securities, Reliance Securities, Hensex Securities, Swastika Investmart, Ashika Research, BP Equities (StoxBox) and Marwadi Financial Services have given a “SUBSCRIBE” rating to the issue.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 14 Jul 2023, 09:35 AM IST