Utkarsh Small Finance Bank Re-files DRHP IPO slash by 63%

August 1, 2022

New Delhi Utkarsh Small Finance Bank (SFB) has refiled its draft red herring prospectus (DRHP) to float its original public immolation (IPO) with the capital requests controller SEBI. The company has slashed its issue size by 63 per cent to raise Rs 500 crore via its original stake trade. According to the rearmost DRHP, the issue consists of only fresh equity shares with a face value of Rs 10 each. Before, the Varanasi- grounded lender had filed its draft paper in July 2021 to raise Rs1,350 which included a fresh issue worth Rs 750 crore and offer- for- trade (OFS) of Rs 600 crore by protagonist Utkarsh Core invest.

The company, in discussion with the lead directors to the issue may consider a pre-IPO placement adding up to Rs 100 crore. However, the fresh issue size will be reduced, if similar pre-IPO placement is accepted.

still, the lender didn’t cite or mention the reason for cutting the issue size significantly. Also, the lender didn’t clarify the explanation for not launching its issue in the last one time. Utkarsh SFB claims to record the alternate fastest asset under operation (AUM) growth between fiscal time 2018- 19 and fiscal time 2021- 22. It has an AUM of further than Rs5,000 crore.

The issue proceeds will be utilized to compound its league 1 capital base to meet unborn capital conditions. The lender had demurred- off its operations in financial time 2009- 10 as a non-banking fiscal company, substantially in Uttar Pradesh and Bihar.

As of March 31, 2022, the lender’s operations were spread across 22 countries and union homes of the country, with 686 banking outlets and 12,617 workers serving 3.14 million guests majorly located in pastoral and semi civic areas.Utkarsh Small Finance Bank’s gross loan portfolio stood at Rs 10,630.72 crore as of March 31, 2022, whereas total deposits were Rs 10,074.18crore.

The company will allocate at least 75 per cent of the equity shares to the good institutional buyers, where as non-institutional investors will get 15 per cent shares. Retails stab will have their claim on the remaining 10 per cent of shares.

The lender’s gross non-performing means for the period increased 6.1 per cent from 3.75 per cent last time. Net NPA rose 2.31 per cent as against1.33 per cent. It reported a 45 per cent decline in profit from a time ago to Rs 61.46 crore. ICICI Securities NSE 1.35% and Kotak Mahindra NSE 1.15% Capital Company are the book running lead directors for the offer, while KFin Technologies has been appointed as the register to the issue.

About Utkarsh Small Finance Bank

Utkarsh Small Finance Bank is a proud solitary Small Finance Bank from Varanasi. Established in 2009 with the charge to empower the low- income group financially, it has reached to new heights moment. The ideal of our bank is’ Ummeed’- giving stopgap to guests for fulfilling their dreams and requirements. Over the times, we’ve extended our services to 112 sections of 11States.


moment we boast a client Base of further than 15 Lakh satisfied guests with 400 Banking Outlets. In moment’s time where technology is reshaping the world, we aim to encourage people barred from the formal banking sector until now to start banking with our affordable and accessible banking services.

Our focus is to give services that are process centric, technology enabled and people acquainted performing in dependable, scalable and sustainable institution easing socioeconomic change.

We also have an action called Utkarsh Welfare Foundation which works in the areas of fiscal knowledge and Addition piecemeal from Health enterprise.

Our sweats have been conceded with Skoch (Gold)-2016 Award for Inclusive Insurance, CIMSME’s MSME Banking Excellence Award, Mix STAR( Socially Transparent And Responsible) Award and Microfinance India Organisation of the Time( Small and Medium order) Award in 2011.

To help come the most trusted fiscal service provider, our honourable Prime Minister Narendra Modi launched Full Banking Services on 22nd September 2017.

Vision & Mission

To be the most trusted, digitized bank that is financially and socially inclusive, and creates value across social strata through insightful and viable solutions. Be the preferred financial institution across all customer segments through technology enabled solutions that are sustainable, inclusive, and scalable, supported by a work culture that centers on passion, values and corporate ethics to deliver best in class customer experience.

Core values

  • Persistence is our innate quality
  • Responsible and Ethical in our dealings
  • Inclusive in our approach
  • Diligent in our process
  • Excellence in all that we do