New Delhi: Utkarsh Small Finance Bank, a small finance bank (SFB) based in Varanasi, has filed draught papers with market regulator Sebi for an initial public offering (IPO) worth Rs 1,350 crore. The lender is looking for a fresh share issuance of Rs 750 crore and a selling bid of up to Rs 600 crore. It net proceeds from the new issue to boost its Tier 1 capital base to meet potential capital needs arising from asset growth, such as loans and advances. The company will consider raising Rs 250 crore through a pre-IPO placement by the press release, which done in consultation with the issue’s named lead managers.
If eligible institutional buyers receive 75% of the bid, non-institutional investors will receive 15% of the offer. Retail investors able to purchase up to 10% of the concern. According to a CRISIL survey, Utkarsh was founded in 2016 and began operations in 2017. It is one of the hiped small finance banks in the country as of FY2020. The lender had 528 banking locations as of September 30, 2020. It has a customer base of 27.4 lakh.
Deposits and disbursements rose at a compounded annual growth rate of 54.48 per cent and 33.66 per cent, respectively, for the lender during FY18-20. According to a press release, Utkarsh had the lowest gross and net NPA ratios among its SFB peers as of March 31, 2020.