Utkarsh Small Finance Bank files draft papers for Rs 1,350-crore offering




Utkarsh Small Finance Bank has filed preliminary papers with regulator to raise Rs 1,350 crore through an initial share sale.


The Initial Public Offer (IPO) comprises fresh issue of equity shares worth Rs 750 crore and an offer of sale to the tune of Rs 600 crore by promoter Utkarsh Coreinvest Ltd, according to the Draft Red Herring Prospectus (DRHP) filed with



The Varanasi-headquartered lender said it may also consider raising Rs 250 crore through a pre-IPO placement which would be in consultation with the lead managers to the issue.


Proceeds from the fresh issue would be utilised to augment tier 1 capital base to meet future capital requirements.


Utkarsh began operations as a small finance bank in 2017 from being a microfinance lender since 2009. The small finance bank’s bulk of the lending portfolio is towards microfinance.


According to a Crisil report, Utkarsh was one of the most profitable in the country as on FY20.


As of September 30, 2020, the small finance bank across 528 banking outlets served 2.74 million customers, majorly located in rural and semi-urban areas in Bihar, Uttar Pradesh and Jharkhand that have a significant untapped market. The lender’s deposits and disbursements grew at a CAGR of 54.48 per cent and 33.66 per cent, respectively during FY18-20.ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company have been appointed as book running lead managers to the issue.

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