Varanasi-based Utkarsh Small Finance Bank has received approval from the Securities and Exchange Board of India (SEBI) for its Rs. 500 Cr via Initial Public Offering.
The IPO comprises equity shares of face value of Re 10 each, is a complete fresh issue of shares and the entire proceeds will go to the company.
Promoted by Utkarsh CoreInvest Limited, which commenced its operations as an NBFC in Fiscal 2010 focuses on providing microfinance to the unserved and underserved segments, particularly in the states of Uttar Pradesh and Bihar, according to the CRISIL report stated in its DRHP. Between FY2019 and FY22, Utkarsh recorded the second fastest AUM growth.
As on March 31, 2022, the small finance banks operations serviced 22 states through 686 banking outlets majorly located in rural and semi urban areas primarily in the states of Bihar, Uttar Pradesh and Jharkhand.
Its Gross Loan Portfolio grew from Rs 6,660.95 crore as of March 31, 2020 to Rs 10,630.72 crore as of March 31, 2022 and total deposits almost doubled from Rs 5,235.21 crore as of March 31, 2020 to Rs 10,074.18 crore as of March 31, 2022.
Net profit of Utkarsh Small Finance Bank rose 443.35% to Rs 89.49 crore in the quarter ended June 2022 as against Rs 16.47 crore during the previous quarter ended June 2021. Total Income rose 39.66% to Rs 655.33 crore in the quarter ended June 2022 as against Rs 469.23 crore during the previous quarter ended June 2021.
ICICI Securities Limited and Kotak Mahindra Capital Company Limited are the book running lead managers, while KFin Technologies Limited is the registrar to the offer.