Utkarsh Small Finance Bank began operations as a small finance bank in the year 2017
Utkarsh Small Finance Bank has filed preliminary papers with market regulator Sebi to raise Rs 1,350 crore through the primary market. The Varanasi-headquartered lender’s initial public offering (IPO) will comprise fresh issue of equity shares worth Rs 750 crore and an offer of sale of Rs 600 crore by the promoter Utkarsh Coreinvest, according to the draft red herring prospectus (DRHP) filed with Sebi.
A total of 75 per cent of the issue will be reserved for qualified institutional buyers, 15 per cent for non-institutional investors and up to 10 per cent, for retail investors.
The bank will utilise the net proceeds from the primary market sale to augment its Tier 1 capital base to meet future capital requirements.
Utkarsh Small Finance Bank, which was a microfinance lender since 2009, began operations as a small finance bank in 2017. It has more than 500 banking outlets across the states of Bihar, Uttar Pradesh and Jharkhand.
ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company are the book-running lead managers to the public issue.