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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link