Money & Banking

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

Our Bureau Mumbai | Updated on March 05, 2021

Utkarsh Small Finance Bank Ltd has filed a draft red herring prospectus (DRHP or early initial papers) with the markets regulator to raise ₹1,350 crore through an initial public offering (IPO).

The offering would comprise a fresh issue of shares of up to ₹750 crore and an Offer for Sale of up to ₹600 crore by shareholder Utkarsh Coreinvest Ltd. About 75 per cent would be reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

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

According to the DRHP, the firm may also consider raising ₹250 crore through a pre-IPO placement. The company intends to use the net proceeds of the fresh issue to augment its Tier-I capital base to meet future capital requirements.

The Varanasi-headquartered company, which commenced operations in 2017, started its NBFC operations in 2010 and thereafter converted to an NBFC MFI.

Its deposits and disbursements have grown at a compounded annual growth rate of 54.48 per cent and 33.66 per cent, respectively, between FY 18-20.

Published on March 05, 2021

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