New Delhi (Anish Yande): Utkarsh Small Finance Bank has filed documents required for launching its initial public offering with the Securities Exchange Board of India. The small finance bank is planning to raise Rs 1,350 crore through its IPO. Utkarsh Small Finance Bank would be utilizing the funds to fulfill its capital requirements.
Utkarsh Small Finance Bank files IPO papers:
The public issue of Utkarsh Small Finance Bank comprises a fresh issue of up to Rs 750 crores and an offer for sale of Rs 600 crores.
The lender said that it may consider a pre-IPO placement of shares of up to Rs 250 crores after consultations with the investment banks managing the share sale.
The book-running lead managers to the issue are Kotak Investment Banking, ICICI Securities, IIFL Securities.
Utkarsh Small Finance Bank would be utilizing the funds raised from the IPO towards augmentation of the Tier-I capital base for fulfilling the future capital requirements of the firm. The lender would be looking to fulfilling the capital requirements created due to the growth in its assets such as advances and loans.
The promoter of Utkarsh Small Finance Bank is Utkarsh Coreinvest. The promoter is a non-banking finance company that delivers microfinance solutions to segments in Uttar Pradesh and Bihar.
Financial record of Utkarsh Small Finance Bank:
Utkarsh Small Finance Bank has a presence in 18 states and union territories. The lender has provided its services for 27.4 lakh customers in semi-urban and rural areas in Uttar Pradesh, Bihar, and Jharkhand. Small Finance Bank has more than 8,700 employees and 528 banking outlets, as recorded in September 2020.
The total gross loan portfolio of the lender constitutes 41.91 percent in Bihar and the gross loan portfolio of Jharkhand constitutes 6.74 percent. The gross loan portfolio in Uttar Pradesh comprises 27.32 percent of the total portfolio.
Utkarsh Small Finance Bank's net profit in FY20 was recorded at Rs 186.74 crore, as compared to Rs 110.87 crore in FY19. The total income of the lender was recorded at Rs 958.25 crore in FY19 which rose to Rs 1,406.24 crore in FY20.
Image Credit: Google