- by Stocktry Expert
- 06th Mar 2021
IPO: Utkarsh Small Finance Bank Files Draft Papers for Rs 1,350-Crore
Utkarsh Small Finance Bank has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise around Rs 1,350 crore through an initial public offering. The public issue comprises a fresh issue of Rs 750 crore and an offer for sale by Utkarsh Coreinvest Ltd aggregating up to Rs 600 crore.
The company intends to utilise the proceeds from the fresh issue to augment its tier 1 capital base to meet future capital requirements arising out of growth in its assets, i.e. loans and advances, the DRHP said.
The Varanasi-headquartered Utkarsh Small Finance Bank is among the most profitable small finance banks in the country and is among the leaders in the segment in terms of return on assets. It had the highest return on equity among SFBs in India in FY20.
It has a presence in 18 states and union territories, with 528 banking outlets and 8,729 employees, as of September 2020. It had 2.74 million customers (both deposit and credit), most of them in rural and semi-urban areas of Bihar, Uttar Pradesh and Jharkhand. The three states constitute 41.91 percent, 27.32 percent and 6.74 percent of the total gross loan portfolio (based on location of the banking outlet), respectively.
ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue.