Utkarsh Small Finance Bank has filed preliminary papers with market regulator sebi, raising ₹ 1,350 crore through initial share sale.
The initial public offer (IPO) includes a fresh issue of ₹ 750 crore equity shares and an offer for sale by promoter Utkarsh Corinvest Limited, as per the draft Red Herring Prospectus (DRHP) filed with SEBI.
The Varanasi-headquartered lender said it could also consider raising a 250 crore through pre-IPO placements which would be floated in consultation with key managers.
The proceeds from the fresh issue will be used to expand the Tier 1 capital base to meet future capital requirements.
Utkarsh started operations as a small finance bank in 2017, being a microfinance lender since 2009. A large part of the lending portfolio of small finance banks is towards microfinance.
According to a report by CRISIL, Utkarsh was one of the most profitable small finance banks in the country as per FY'2020.
As of September 30, 2020, the small finance bank serviced 2.74 million customers at 528 banking outlets, mainly located in rural and semi-urban areas in Bihar, Uttar pradesh and Jharkhand, which have a significant untapped market. is.
The lender's deposits and disbursements grew at a CAGR of 54.48% and 33.66% respectively during FY 18-20.
ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company have been appointed book running lead managers for the issue.
Recently, microfinance company Arohan Financial Services also filed draft papers to raise Rs 1,750-1,800 crore through an IPO.