Utkarsh Small Finance Bank Refiles For Rs.500 Cr IPO

Utkarsh Small Finance Bank Refiles For Rs.500 Cr IPO

To augment Tier 1 capital base for expansion

Utkarsh Small Finance Bank’s operations are spread across 22 states and Union Territories with 686 banking outlets

MUMBAI, July 31 (The CONNECT) - Varanasi-based Utkarsh Small Finance Bank Ltd recorded the second fastest AUM growth between Fiscal 2019 and Fiscal 2022 among SFBs has refiled its draft papers with the regulator to raise an aggregate of Rs. 500 Cr via Initial Public Offering. The IPO comprises equity shares of face value of Re 10 each, is a complete fresh issue of shares and the entire proceeds will go to the company.

According to media reports, the observations issues by SEBI on the SFB’s previous filing has expired in June. Hence the bank filed a fresh document.

Utkarsh SFB with an AUM of more than Rs 5000 crore plans to utilize the issue proceeds to augment its tier 1 capital base to meet future capital requirements.

ICICI Securities Limited and Kotak Mahindra Capital Company Limited are the book running lead managers, while KFin Technologies Limited is the registrar to the offer.

The company in consultation with the book running lead managers may consider issue of securities up to Rs 100 crore. If such pre-IPO placement is undertaken, the fresh issue size will be reduced.

Promoted by Utkarsh CoreInvest Limited, which commenced its operations as a NBFC in Fiscal 2010 and focused on providing microfinance to unserved and underserved segments particularly in the states of Uttar Pradesh and Bihar, according to the CRISIL report. After receiving RBI’s in-principle approval in October 2015 to establish an SFB, Utkarsh CoreInvest Limited founded Utkarsh Small Finance Bank Limited as a wholly-owned subsidiary in April 2016. Utkarsh CoreInvest Limited transferred its microfinance business as a continuing concern to its Bank, which started operating in January 2017, after acquiring the RBI Licence in November 2016 to establish and carry on business as an SFB.

As on March 31, 2022, its operations are spread across 22 states and Union Territories with 686 banking outlets and 12617 employees serving 3.14 million customers majorly located in rural and semi urban areas primarily in the states of Bihar, Uttar Pradesh and Jharkhand. Its retail term deposits and CASA as a percentage of overall deposits comprised of 37.28% and 22.37% respectively, in the same period. Its product suite includes a range of deposit products including saving accounts, salary accounts, current accounts, recurring and fixed deposits (with callable and non-callable options) and locker facilities. It also offers diversified liabilities products at competitive rates targeted primarily at retail customers from all segments led by senior citizens, middle-class individuals and self-employed and salaried individuals.

Its Gross Loan Portfolio grew from Rs 6,660.95 crore as of March 31, 2020 to Rs 10,630.72 crore as of March 31, 2022 and total deposits almost doubled from Rs 5,235.21 crore as of March 31, 2020 to Rs 10,074.18 crore as of March 31, 2022.

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