Economy

Utkarsh Small Finance Bank files draft papers for ₹1,350 crore-IPO

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

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

The Varanasi-headquartered lender said it may also consider raising ₹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 small finance banks in the country as on FY'2020.

As on 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% and 33.66%, respectively during FY18-20.

ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company have been appointed as book running lead managers to the issue.

Recently, microfinance company Arohan Financial Services also filed draft papers to raise ₹1,750-1,800 crore through an IPO.

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Printable version | Apr 11, 2021 1:37:31 AM | https://www.thehindu.com/business/Economy/utkarsh-small-finance-bank-files-draft-papers-for-1350-crore-ipo/article33999939.ece

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