Back to Career News

Utkarsh small finance bank gets Sebi’s nod for IPO

October 28, 2022

Utkarsh small finance bank gets Sebi’s nod for IPO
Utkarsh Small Finance Bank has received capital markets regulator Sebi’s go ahead to raise ₹500-crore through an Initial Public Offering (IPO). The Varanasi-headquartered Small Finance Bank’s (SFB) IPO is a complete fresh issue of shares and the entire proceeds will go to the lender, according to Draft Red Herring Prospectus (DRHP).

The lender may consider issue of securities aggregating up to ₹100 crore in a pre-IPO placement round. If such placement is undertaken, the fresh issue size will be reduced.

The SFB, which filed fresh draft papers with Sebi in August, obtained its observation letter on October 21, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

In Sebi’s parlance, obtaining its observation letter implies the markets watchdog’s approval to launch the IPO.

Going by the draft papers, proceeds from the fresh issue will be utilised to augment the lender’s Tier 1 capital base to meet future capital requirements.

Incorporated in 2016, Utkarsh commenced operations in 2017 and its product suite includes a range of deposit products, including saving accounts, salary accounts, current accounts, recurring and fixed deposits and locker facilities.

As on March 2022, its operations are spread across 22 states and Union Territories with 686 banking outlets and 12,617 employees serving 3.14 million customers majorly located in rural and semi urban areas primarily in the states of Bihar, Uttar Pradesh and Jharkhand.

Important Links:

Recommended for you ...

Indian Tech Startups Raise $1.6 Billion in Q1 2024, Retail and Fintech Lead Growth
Indian Tech Startups Raise $1.6 Billion in Q1 2024, Retail and Fintech Lead Growth

March 28, 2024

Fintech Experts Advocate for Cohesive Regulatory Framework Amid Rapid Digitalisation of Finance
Fintech Experts Advocate for Cohesive Regulatory Framework Amid Rapid Digitalisation of Finance

March 27, 2024

Indian Payment Aggregators Rush to Obtain International Payment Licences
Indian Payment Aggregators Rush to Obtain International Payment Licences

March 27, 2024

Chat on WhatsApp