The Rs 500 crore initial public offering (IPO) of Utkarsh Small Finance Bank (SFB) will open for subscription on July 12. The company has fixed a price band of Rs 23 to Rs 25. The issue, which closes on July 14, will get listed on the exchanges on July 24 with an expected market capitalisation of up to Rs 2,740 crore.

According to the Draft Red Herring Prospectus (DRHP), 75% of the fresh issue is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII) and the rest 10% for retail investors, who can bid in multiples of 600 shares.

The proceeds from the IPO will be used to increase its Tier-1 capital base to meet future capital requirements. As on March 2023, its tier-1 capital base was Rs 1,844.82 crore, equivalent to 18.25%.

ICICI Securities and Kotak Mahindra Capital Company are the book-running lead managers to the issue.

Utkarsh SFB, incorporated in 2016, offers a range of deposit products, including saving accounts, salary accounts, current accounts, recurring and fixed deposits and locker facilities. 

The bank has a gross loan portfolio of over Rs 6,000 crore, the third-fastest growth among its peers between 2019 and 2023. It also had the second-highest provision coverage ratio among SFBs in fiscal 2023.