Utkarsh Small Finance Bank is bringing its IPO next week, know every detail from price band to valuation

This week another microfinance bank is coming up with its IPO. The name of this bank is Utkarsh Micro Finance Bank. It will open for IPO next week. The bank has fixed its price band for this at Rs 23 to 25 per share. The price band of the stock trades at 2.3 to 2.5 times its face value.
The IPO of this bank will be open to the public from July 12 to July 14. The bank will raise funds through anchor investors on July 11.
Utkarsh Microfinance Bank is preparing to raise around Rs 500 crore through this IPO. The special thing about this IPO is that this entire IPO will be a fresh issue. The bank will reserve 1 percent shares for its employees. The bank has reserved 20 lakh shares to raise Rs 500 crore.
The bank said it will use the proceeds from the IPO to strengthen its Tier 1 capital base. Due to this, the bank has sufficient capital in case of need in the future. Along with this, all the costs related to the listing will be paid from this fund.
Investors can apply for a minimum of 600 shares in this IPO. After this, he can invest in shares with a coefficient of 600. This means that retail investors can invest as little as Rs 15,600 in this IPO.
You have the option to buy a maximum of Rs 1.95 lakh i.e. 13 lots. This price will be determined on the basis of the price band of the IPO. Retail investors cannot offer more than Rs 2 lakh in this IPO.
According to bank information, 75 percent of the IPO is reserved for Qualified Institutional Investors (QIBs), 15 percent for High Net Worth Individuals (HNIs), and the remaining 10 percent for retail investors.
Presently the bank is present in 26 states and union territories with 830 bank branches. It has 15,424 employees. The bank has around 35.9 lakh customers. Most of them live in rural and suburban areas of Bihar and Uttar Pradesh. The bank is planning to expand its network.
As soon as the bank is listed in the market, this bank will be the fifth small finance bank in the country to be listed on the stock exchange. Earlier it included Ujjivan Small Financial Bank, AU Small Financial Bank, Equitas Small Financial Bank, and Suryoday Small Financial Bank.