Utkarsh Small Finance Bank funding

Utkarsh Small Finance Bank on Monday announced that it has raised a little over Rs 240 crore via a private placement of equity shares before its initial share-sale.

Conforming to an agreement in February, the bank has closed a private placement of its equity shares and raised Rs 240.47 crore by allotting 89,061,647 equity shares at Rs 27 per equity share to six investors, the lender said in a statement.

The six investors are — Aavishkaar Bharat Fund, Olympus ACF Pte Ltd, Growth Catalyst Partners LLC, Ability Participations Mauritius, Triodos Sicav II – Triodos Microfinance Fund, Triodos Funds BV (in its capacity as the legal owner of Triodos Fair Share Fund), it added.

Kotak Mahindra Capital Company acted as financial advisor to the bank for the private placement round.

Earlier this month, Utkarsh Small Finance Bank filed preliminary papers with capital markets regulator SEBI to raise Rs 1,350 crore via an initial share-sale.

The initial public offer (IPO) includes a fresh issue of equity shares worth Rs 750 crore and an offer of sale to the tune of Rs 600 crore by promoter Utkarsh Coreinvest Ltd, as per the draft red herring prospectus (DRHP).

Moreover, the Varanasi-headquartered lender may undertake a pre-IPO placement of up to Rs 250 crore in consultation with the lead managers to the offer.

Money obtained from the fresh issue would be used to boost the tier-1 capital base to fulfill future capital requirements.

Utkarsh began operations as a small finance bank in 2017, transiting from a microfinance lender in 2009. The small finance bank’s most of the lending portfolio is towards microfinance.

According to a Crisil report, Utkarsh is one of the most profitable small finance banks in the country as of FY2020.

As of September 30, 2020, the small finance bank has operations spread across 528 banking outlets and served 2.74 million customers mostly located in rural and semi-urban areas of Bihar, Uttar Pradesh, and Jharkhand that has a significant untapped market.

As an emerging player in the industry, Utkarsh Small Finance Bank has openings across various departments like Micro Banking, Liabilities, Retail Assets, Wholesale Banking, Credit, HR and Training, Finance and Accounts, Compliance, Risk Management, Vigilance, Internal Audit, Branding and Marketing, Administration, Projects, IT, Branch Operations and Support, Central Processing Center, Collections, Corporate Communication, Financial Institutional Group, Legal, and Wheels. Applications for job openings across these departments could be sent by visiting the careers section of the company’s website.