Utkarsh Small Finance Bank IPO Basis of Allotment

UTKARSH SMALL FINANCE BANK LIMITED

Our Bark was incorporated as "Utkarsh Small Finance Bank Limited" on April 30, 2016 at Varanasi, Uttar Pradesh as a public limited company under the Companies Act, 2013 and was granted a certificate of incorporation by the Registrar of Companies, Central Registration Centre Our Promoter, Utkarsh Core Invest limited (formerly known as Utkarsh Micro Finance Limited), was granted an in-principle approval to establish a small finance bank ('SFB'), by the RBI, pursuant to its letter dated October 7, 2015. Subsequently our Bank received the final approval of the RBI to carry on the business as an SFB on November 25, 2016. Our Bank commenced its business operations on January 23, 2017 and was included in the second schedule to the RBI Act pursuant to a notification issued by the RBI dated October 4, 2017 and published in the Gazette of India (Part III - Section 4) dated November 7, 2017. For details in relation to the change m the registered office address of our Bank, see "History and Certain Corporate Matters'' beginning on page 205 of the Prospectus dated July 17, 2023 ("Prospectus")

Our Bank has feed the Prospectus dated July 17, 2023 with the RoC, and the Equity Shares are proposed to be listed on the National Stock Exchange of India Limited ('NSE') and BSE Limited ('BSE') and trading is expected to commence on July 21, 2023.

INITIAL PUBLIC OFFER OF 200,000.000 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH ("EQUITY SHARES") OF UTKARSH SMALL FINANCE BANK LIMITED (OUR ‘BANK") FOR CASH AT A PRICE OF Rs. 25 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs.15 PER EQUITY SHARE) (THE "ISSUE PRICE") AGGREGATING TO Rs. 5,000 MILLION (THE "ISSUE"). THE ISSUE INCLUDES A RESERVATION OF 2,000,000 EQUITY SHARES, AGGREGATING TO Rs. 50 MILLION (CONSTITUTING 1% OF THE SIZE OF THE ISSUE), FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS HERE IN AFTER REFERRED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE SHALL CONSTITUTE 18.25% AND 18.07%, RESPECTIVELY, OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR BANK.

The Issue wasmade in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957. as amended, (the 'SCRR') read with Regulation 31 of the SEBIICDR Regulations. The Issue was made through the Book Building Process, in compliance with Regulation 6(2) of the SEBI ICDR Regulations, where not less than 75% of the Net Issue will be Allotted on a proportionate basis to Qualified Institutional Buyers (‘QIBs') (the "QIB Portion'), provided that our Bank, in consultation with the BRLMs, allocated up to 60% of the QIB Portion to Anchor Investors, on a discretionary basis (the 'Anchor Investor Portion'). of which one-third was reserved for domestic Mutual Funds, subject to valid Bids having been received from domestic Mutual Funds at or above the price at which Equity Shares are allocated to Anchor Investors. Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) (‘Net QIB Portion') was made available for allocation on a proportionate basis to Mutual Funds only and the remainder of the Net QIB Portion was made available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids having been received at or above the Issue Price. The aggregate demand from Mutual Funds was not less than 5% of the Net QIB Portion. If at least 75% of the Net Issue cannot be Allotted to QIBs, then the entire application money will be refunded forthwith. Further, not more than 15% of the Net Issue was made available for allocation to Non-institutional Bidders of which one-third of the Non-institutional Portion was made available for allocation to Bidders with an application size of more than Rs. 200,000 and up to Rs. 1,000,000 and two-thirds of the Non-institutional Portion was made available for allocation to Bidders with an application size of more than Rs. 1,000,000 provided that under-subscription in either of these two sub-categories of Non-institutional Portion may have been allocated to Bidders in the other sub-category of Non-institutional Portion in accordance with the SEBI ICDR Regulations, subject to valid Bids received at or above the Issue Price. Further, not more than 10% of the Net Issue was made available for allocation to Retail Individual Bidders, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Issue Price. All Bidders (other than Anchor Investors) mandatorily participated in this Issue through the Application Supported by Block Amount ("ASBA') process and provided details of their respective bank account (including UPI ID for UPI Bidders) in which the Bid Amount was blocked by the Self-Certified Syndicate Banks ('SCSBs') or under the UPI Mechanism, as applicable. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see Issue Procedure-beginning on page 417 of the Prospectus

The bidding for Anchor Investor opened and closed on July 11, 2023. The Bank received 20 applications from 14 Anchor Investors for 93,100,800 Equity Shares. The Anchor Investor Issue Price was finalized at Rs. 25 per Equity Share. A total of89.100,000 Equity Shares were allocated under the Anchor Investor Portion aggregating to 2,227,500,000.

The Issue received 2,046,974 applications for 12,396,002,400 Equity Shares (prior to technical rejections) resulting in 61.9800 times subscription as disclosed in the Prospectus. The details of the applications received in the Issue from Retail Individual Bidders. Non-lnstitutional Bidders. QIBs. Eligible Employee Bidders and Anchor Investors are as under (before technical rejections):

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid lssue Closing Date at different Bid prices is as under:

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on Tuesday, July 18,2023.

A. Allotment to Retail Individual Bidders (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Bidders, who have bid at Cut-Off Price or at the Issue Price of Rs. 25 per Equity', was finalized in consultation with NSE. This category has been subscribed to the extent of 76,13967 times. The total number of Equity Shares Allotted in Retail Individual Bidders category is 19,800,000 Equity Shares to 33,000 successful applicants. The category-wise details of the Basis of Allotment are as under:

B. Allotments Non-lnstitutional Bidders (more than Rs. 2 lakhs and upto Rs. 10 lakhs) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstilutional Bidders (more than Rs. 2 lakhs and upto Rs. 10 lakhs), who have bid at the Issue Price of Rs. 25 per Equity Share or above, was finalized in consultation with NSE This category has been subscribed to the extent of 81,78824. The total number of Equity Shares allotted in this category is 9,900,000 Equity Shares to 1,178

Please Note: 47 additional Shares shall be allotted to 101 successful Allottees from the categories 9.000-39,600 (i.e. excluding successful applicants from Category 8.400) in the ratio of 1:1

Please Note: 1 additional Share shall be allotted to 53 Allottees from amongst 101 successful Allottees from the categories 9,000-39,600 (i.e. excluding successful applicants from Category 8,400) in the ratio of 53:101

C. Allotment to Non-institutional Bidders (more than Rs. 10 lakhs) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-institutional Bidders (more than Rs. 10 lakhs), who have bid at the Issue Pnce of Rs. 25 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 89,93197 times. The total number of Equity Shares allotted in this category is 19,800,000 Equity Shares to 2,357 successful applicants. The category-wise details of the Basis of Allotment are as under (Sample)

Please Note: 1 (One) lot of8400 shares have been allotted to all the Applicants of the categories 53.400,64,200.70.200.91.800.720,000,1.800,000 and 1.999.800 in the ratio of 1:35 (All these categories have been moved at the end for easy reference)

Please Note: 1 additional Equity Share has be allotted to 1200 Allottees from amongst 2357 successful Allottees from all the categories (Serial No. 1 to 275) in the ratio of 28:55

D. Allotment to Eligible Employees (After Technical Rejections)

The Basis of Allotment to the Eligible Employees, who have bid at the Issue Price of Rs. 25 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 1,44750. The total number of Equity Shares allotted in this category is 2,000,000 Equity Shares to 1,261 successful applicants. The category-wise details of the Basis of Allotment are as under:

Please Note: 62 Applications from Category 8,400 to 19,800 have been included in Category 7,800 in the Employees Category.

Please Note: 1 additional Share shall be allotted to 222 Allottees from amongst 693 successful applicants from the categories 1,200 -7,800 (i.e. excluding successful applicants from

Category 600) in the ratio of 8:25

E. Allotment to QIBs (After Technical Rejections)

Allotment to QIBs, who have bid at the Issue Price of Rs. 25 per Equity Share or above, has been done on a proportionate basis in consultation with NSE. This category has been subscribed to the extent of 135.71445 times of Net QIB Portion. As per the SEBI ICDR Regulations. Mutual Funds were allotted 5% of the Equity Shares of Net QIB portion available i.e. 2,970,000 Equity Shares and other QIBs and unsatisfied demand of Mutual Funds were allotted the remaining available Equity Shares i.e. 56,430,000 Equity Shares on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 59,400,000 Equity Shares, which were allotted to 171 successful Applicants.

F. Allotment to Anchor Investors (After Technical Rejections)

The Bank in consultation with the BRLMs, have allocated 89,100,000 Equity Shares to 14 Anchor Investors (through 20 Anchor Investor Application Forms) (including 6 domestic Mutual Funds through 12 schemes) at an Anchor Investor Issue Price at Rs. 25 per Equity Share in accordance with SEBI ICDR Regulations. This represents 60% of the QIB portion.

The Board of Directors of our Bank at its meeting held on July 18.2023 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants. The Allotment Advice Cum Refund Intimation and/or notices have been dispatched to the address of the investors as registered with the depositories. Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public Issue Account on July 18, 2023 and the payments to non-syndicate brokers have been issued on July 19,2023. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on July 19, 2023 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Bank has filed the listing application with NSE and BSE on July 19, 2023. The Bank has received the listing and trading approval from NSE and BSE. and trading will commence on July 21, 2023.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

INVESTORS PLEASE NOTE

These details of the Allotment made shall be hosted on the website of Registrar to the Issue, KFin Technologies Limited at www.kfintech.com.

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant, Serial number of the Bid cum Application form number. Bidders DP ID, Client ID. PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares bid for. name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

	KFin Technologies Limited
	Selenium, Tower-8, Plot 31 & 32. Financial District. Nanakramguda. Serilingampally. Hyderabad. Rangareddi 500 032, Telangana. India
	Tel: +9140 6716 2222 /1800 345 4001; E-mail: utkarsh.ipo@kfintech.com; Investor grievance e-mail: einward.ris@kfintech.com
	Website: www.kfintech.com; Contact person: Mr. M. Murali Krishna. SEBI registration no.: INR000000221

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS

PROSPECTS OF UTKARSH SMALL FI NANCE BANK LIMITED.

UTKARSH SMALL FINANCE BANK LIMITED has filed a Prospectus dated July 17, 2023 ( Prospectus') with the RoC. The Prospectus is made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLMs i.e., ICICI Securities Limited at www.icicisecurities.com and Kotak Mahindra Capital Company Limited at https://investmentbank.kotak.com, the websites of the Stock Exchanges i.e. NSE at www.nseindia.com and the BSE at www.bseindia.com. Potential investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled ‘RiskFactors' beginning on page 25 of the Prospectus.

The Equity Shares offered in the Issue have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to. the registration requirements of the U.S. Securities Act and applicable state securities laws in the United States. Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in compliance with Regulation S and the applicable laws of the junsdiction where those offers and sales are made. This announcement does not constitute an offer for sale of securities in any jurisdiction, including the United States.