New Delhi: Utkash Small Finance Bank (SFB) announced its Initial Public Offering (IPO), which will open for subscription on July 12. The price band has been fixed at Rs 23-25; the lower-upper price band is 2.3-2.5 times the face value of equity shares.

Through the initial public offer, the bank aims at raising Rs 500 crore, comprising only a fresh issue portion. The offer has been reserved up to 1 per cent of the issue size for its employees, which equals Rs 5 crore or 20 lakh shares.

The net proceeds will be utilised to boost up its Tier-1 capital base to fulfil the required capital in the future, besides issues expenses.

The minimum issue size has been set to 600 shares, which means retail investors can issue a minimum of shares worth Rs 15,000 per lot and their maximum investment will be Rs 1.95 lakh for 13 lots, at an upper band.

For the qualified institutional buyer, the issue size has been reserved up to 75 per cent, 15 per cent for high net-worth individuals and the remaining 10 per cent for retail investors.

Utkarsh SFB, headquartered in Varanasi was founded in 2016; started its operation in 2017. The bank offers services such as savings accounts, salary accounts, recurring and fixed deposits along with locker facilities.

The banking company operates across 26 states and Union Territories with 830 banking outlets and 15,424 employees as of March 2023. The bank has a 3.59 million customer base mainly coming from rural and semi-urban areas primarily in Uttar Pradesh and Bihar.

(Written by – Mahek Nigam

Edited By – Prateek Gautam)