Utkarsh Small Finance Bank's IPO subscribed 4.2x on day 1 of issue

The company is issuing fresh shares worth Rs 500 crore in the IPO, which will be used for augmenting the bank's tier-1 capital base

Utkarsh Small Finance Bank’s initial public offering (IPO) was subscribed more than 4 times on Wednesday, the first day of the issue. Retail portion of the issue has already been subscribed more than 12 times, while the HNI portion has been subscribed over 7 times. A day earlier, the lender allotted shares worth Rs 223 crore to anchor investors at Rs 25 apiece.

The price band for the issue is Rs 23-25 per share. At the top-end, Utkarsh SFB will have a market-cap of Rs 2,740 crore on a post-dilution basis. The firm is issuing fresh shares worth Rs 500 crore in the IPO, which will be used for augmenting the bank’s tier-1 capital base.