Dark horse stock of the day: Utkarsh Small Finance Bank rallies 20%

Shares of Utkarsh Small Finance Bank Limited witnessed a significant surge today. The stock opened trading at Rs 52.35 per share, marking a 2% increase compared to the previous day’s closing price of Rs 51.32 per share.

The stock hit the upper circuit price limit of 20% in today’s trading session. What’s more, it has also reached a 52-week high price, and as of writing this article, the stock is trading at Rs 60.66 per share, which represents an 18.2% increase from its previous day’s closing price. Moreover, there has been a significant increase in trading volumes in the company’s stock, exceeding 12.72 times the daily average trading volumes.

Furthermore, the 52-week high and low prices are Rs 61.58 and Rs 37.25, respectively. With a market capitalization of Rs 6581 crore, the stock has demonstrated outstanding performance in recent periods, delivering a 24% return within a month. Additionally, it has generated an impressive multibagger return of 142% on its final issue price during its IPO.

IPO Subscription:

On July 14, 2023, the final day of the IPO window, the IPO witnessed an impressive response with a subscription rate of 110.77 times. The public issue received significant interest, as the retail category was subscribed 79.38 times, the QIB category achieved a subscription rate of 135.71 times, and the NII category reached a subscription rate of 88.74 times.

The IPO price range was set between Rs 23 and Rs 25, with a face value of Rs 10 per share and a lot size of 600 shares. The total size of the company’s IPO was Rs 500 crore, and the final share issue price was fixed at Rs 25 each.

The stock debuted with a remarkable 60% return on the listing day itself at Rs 40 per share on the BSE. Currently, the stock is trading at Rs 60.66 per share, and it has provided an impressive return of 142% on its listing price within just 2.5 months of listing.

Business Overview

Utkarsh Small Finance Bank Limited (USFBL), was established on April 30, 2016, with a core mission of delivering banking and financial services, specifically targeting the marginalized and overlooked segments of the population. The bank primarily channels its lending efforts into rural and semi-urban areas of the nation, while its array of financial services extends across the entire country. USFBL officially commenced its operations on January 23, 2017, following the issuance of a small finance banking license by the Reserve Bank of India (RBI) on November 25, 2016. The Bank is headquartered in Varanasi, Uttar Pradesh.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.