Utkarsh Small Finance Bank gets SEBI approval for ₹1,350 crore IPO

Our Bureau Mumbai | Updated on June 09, 2021

The SFB also mulls raising ₹250 crores through a pre-IPO placement.

Uttar Pradesh-based Utkarsh Small Finance Bank Ltd has received the market regulator’s approval to raise ₹1,350 crore through an Initial Public Offering (IPO).

The company may also consider raising ₹250 crore through a pre-IPO placement, and if undertaken, the amount will be reduced from the new issue. The company had filed a Draft Red Herring Prospectus with Sebi on March 5, 2019.

The IPO consists of a new issue of up to ₹750 crore and an offer for sale of up to ₹600 crore by Utkarsh Coreinvest. Following the IPO, the company intends to list the shares both on BSE and NSE.

ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company are the book-running lead managers to the issue.

The firm will use the net proceeds to augment its Tier-I capital base and meet future capital requirements arising from growth in its assets (loans and advances).

The Varanasi-headquartered company had incorporated its Small Finance Bank in 2016 and commenced operations in 2017. As of September 30, 2020, it had served 2.74 million customers, majorly located in rural and semi-urban areas of Bihar, Uttar Pradesh and Jharkhand.

Published on June 09, 2021

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