Key Highlights
- The IPO of Utkarsh Small Finance Bank is a popular choice among investors.
- The IPO is a great way to get in on the ground floor of a new bank.
- The bank is well-positioned to benefit from India’s growing small finance banking sector.
- On July 20, 2023, the IPO is planned to be listed on the stock exchange.
- The GMP for the IPO is currently Rs 40-50 per share, indicating significant demand for the shares.
On the last day of bidding, the Utkarsh Small Finance Bank initial public offering (IPO) was subscribed 14.9 times, with retail investors vying for 15.6 times the shares allotted for them. From July 11 through July 15, 2023, subscriptions to the IPO were accepted.
The initial public offering (IPO) included a new issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of shares by current shareholders for Rs 500 crore. The IPO’s price range was Rs 1,650–1,750 per share. The initial public offering (IPO) was a success, with the retail, non-institutional, and qualified institutional buyer (QIB) portions each receiving 15.6 times, 9.1, and 1.6 times as much interest, respectively.
On July 18, 2023, the allotment status for the IPO will be accessible. On the websites of KFin Technologies Limited or the Bombay Stock Exchange (BSE), investors can verify the status of their allocation. The Utkarsh Small Finance Bank IPO’s grey market premium (GMP) is now between 40 and 50 rupees per share. With respect to the issue price of Rs. 1,650-1,750 per share, this indicates that the shares are trading at a premium of Rs. 40 to 50 per share.
The GMP is a sign of how much demand there is for the shares on the black market. The likelihood of the shares listing at a price higher than the issue price is increased by a high GMP, which shows that there is significant demand for the shares.
On July 20, 2023, the BSE and NSE are set to list the Utkarsh Small Finance Bank IPO. The IPO is anticipated to be a positive event for the stock market because it will bring in a new small finance bank. Utkarsh Small Finance Bank is one of India’s prominent small finance banks. Savings accounts, current accounts, loans, and investment goods are among the services and products provided by the bank. The bank has a considerable presence in India’s rural and semi-urban areas.
The IPO of Utkarsh Small Finance Bank provides investors with an opportunity to invest in a growing bank with a proven track record. The bank is well-positioned to benefit from India’s growing small finance banking sector.
Regarding Grey Market Premium (GMP)
The grey market is an unauthorized market in which shares are exchanged prior to their listing on a stock exchange. The GMP is the differential between the share price on the grey market and the issue price.
The GMP measures the demand for shares on the grey market. A high GMP suggests that the shares are in high demand and are expected to trade at a premium to the issue price. Although the GMP is not always precise, it can be a valuable tool for investors to measure demand for a specific IPO.
Final Thoughts
The Utkarsh Small Finance Bank IPO provides investors with the opportunity to invest in a growing bank with a proven track record. The bank is well-positioned to benefit from India’s growing small finance banking sector.
The GMP for the IPO is currently Rs 40-50 per share, indicating significant demand for the shares. Because the shares are expected to trade at a premium to the issue price, investors should consider participating in the IPO.
The IPO’s allotment status will be available on July 18, 2023. Investors can check their allotment status on the websites of the Bombay Stock Exchange (BSE) and KFin Technologies Limited.
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