Utkarsh SFB cuts IPO size by 63%; files revised draft papers

Utkarsh Small Finance Bank Ltd has submitted updated draft documents with the Securities Exchange Board of India, reducing the amount of its initial public offering by 63 percent. The IPO only consists of new shares being issued.


Previously, in July 2021, the lender filed a DRHP to raise Rs 1350 crore by a fresh issuance of Rs 750 crore and an OFS worth Rs 600 crore by its promoter Utkarsh Coreinvest. The lender did not explain why the IPO amount was reduced.


The proceeds from the issue may be used for the augmentation of the Tier-I capital base to fulfill its destiny capital requirements. As of 31 Mar 2022, it is Tier-1 capital base stood at Rs 1420. 08 percent of the hazard weighted property as in opposition to the minimum requirement of 7.


The lender, which came into the operation in 2010, is primarily focused on providing microfinance to unserved and underserved segments and in particular in the states of Uttar Pradesh and Bihar. As of 31 Mar 2022, the lender had 686 Banking Outlets and 12,617 employees across 22 states and Union Territories.


In contrast to the regulatory requirement of 25%, 70% of its Banking Outlets are placed in Unbanked Rural Centers. The lender had three. Its total deposits for the fiscal year 2022 were Rs 100.75 billion, up from Rs 75.08 billion the previous year.

 Year on year, the gross loan portfolio climbed to Rs 106.31 billion from Rs 84.16 billion. Loan disbursements increased from Rs 59 billion to Rs 90 billion. For the period, the lender’s gross non-performing assets climbed by 6. It claimed a 45 percent increase in earnings from the previous year to Rs 61.