InvestorQ : Can you give me some details of the forthcoming Utkarsh Small Finance Bank IPO?
Priyanka N made post

Can you give me some details of the forthcoming Utkarsh Small Finance Bank IPO?

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Neelam Naik answered.
1 month ago
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The Utkarsh Small Finance Bank or SFB has already filed preliminary papers with SEBI with a proposal to raise Rs.1,350 crore via a sale of shares to the public. In all, the IPO will comprise of fresh issue of equity shares worth Rs.750 crore and an additional offer of sale by the existing shareholders to the tune of Rs.600 crore by promoters, taking the total size of the IPO to approximately Rs.1350 crore.

Utkarsh is based out of Varanasi and is strong in that particular region. It is also looking to raise Rs.250 crore through a pre-IPO placement. The SFB plans to use the proceeds from the fresh issue portion to augment Tier-1 capital base in order to meet capital adequacy requirements. Utkarsh started as a microfinance lender in 2009 and transformed into a small finance bank later in 2017.

CRISIL has reported that Utkarsh was among the most profitable SFBs in FY20. It currently services close to 27.5 lakh customers across its 528 banking front end offices. These are largely in rural and semi-urban areas focused in the staters of Bihar, Uttar Pradesh and Jharkhand. In the last 3 years, its total deposits and disbursements have growth at a CAGR of 54.5% and 33.7% respectively.

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