It intends to utilise the net proceeds from the fresh issue to augment its Tier 1 capital base to meet future capital requirements arising out of growth in its assets, i.e loans and advances. The company may consider raising Rs 250 crore through a pre-IPO placement, which would be in consultation with the appointed lead managers to the issue, it said in a press release.
While 75 per cent of the offer is reserved for qualified institutional buyers, the quota for non-institutional investors is set at 15 per cent. Up to 10 per cent of the issue will be reserved for retail investors.
Incorporated in 2016, Utkarsh commenced operations in 2017, and is one of the most profitable small finance banks in the country as of FY2020, according to a CRISIL report.
As of September 30, 2020, the lender had 528 banking outlets. It has served 27.4 lakh customers majorly located in rural and semi-urban areas in Bihar, Uttar Pradesh and Jharkhand.
During FY18-20, deposits and disbursements for the lender grew at a compounded annual growth rate of 54.48 per cent and 33.66 per cent, respectively. As of March 31, 2020, Utkarsh had the lowest gross and net NPA ratios amongst its SFB peers, it said in a press release.
ICICI Securities, IIFL Securities and Kotak Mahindra Capital Company are the book-running lead managers to the issue.
