There was a new listing today – Utkarsh Small Finance Bank. As against the IPO price of Rs.25/share, the stock got listed at Rs.40 on the NSE and at Rs.39.95 on the BSE – which is a huge 60% premium.

The issue was expected to have a strong listing given the response it had received for the IPO – the issue was subscribed by a huge 101.91 times with QIBs taking the lions share at 124.85x, HNIs at 81.64x and retail investors at 72.11x.

In our IPO Analysis, we had concluded - Microfinance sector has made a comeback on investors’ radar and Utkarsh’s valuation makes the risk reward favourable. Hence, we recommend ‘subscribing to the IPO’, especially for listing gains.