Utkarsh Small Finance Bank has witnessed an impressive debut on the stock exchanges, with its shares locked in a 20% upper circuit and soaring over 90% on Day 1. The IPO's tremendous response, nearly 102 times oversubscribed, fueled this remarkable performance.
As investors ponder whether to sell or hold, analysts offer valuable insights. The company boasts a strong growth track record and a focus on underserved segments, making it well-positioned for SFB sector growth. However, experts advise booking profits on the listing day, while risk-takers can consider long-term holdings, given the abundant growth opportunities in microfinance.
The bank's healthy liquidity profile, cost-efficient risk management, and improved asset quality bode well for its steady growth prospects. Proceeds from the IPO will bolster the Tier 1 capital base to meet future requirements.
With a diverse product suite and impressive top-line performance, Utkarsh Small Finance Bank's bottom-line growth saw a slight slowdown in FY22 due to market trends post-pandemic. Nevertheless, its net NPAs have been showing improvement over the years.
As the bank's journey unfolds, it remains a subject of interest for investors. Decisions should be based on individual risk appetite and long-term goals.