Utkarsh SFB fifth bank in category to be listed on bourses

economictimes.indiatimes.com:

The price band for the IPO was fixed at Rs 23 to Rs 25 per equity share with face value Rs 10. The fundraising is expected to take care of Utkarsh's business expansion for the next 18-24 months, managing director Govind Singh said. Among small finance banks, Jana and Fincare are also looking to raise equity via public offer shortly.

While Fincare refiled draft prospectus for IPO with the market regulator Securities & Exchange Board of India, Jana is expected to do so shortly. Among the listed small finance banks are AU, Equitas, Suryoday and Ujjivan. «After a couple of years of stress, the equity market has now turned conducive for IPO,» Singh said.

It received approval for its IPO in October last year. The bank is promoted by Utkarsh CoreInvest Ltd, which was earlier known as Utkarsh Micro Finance Ltd. The promoter holds 84.75% in the bank while investors including British International Investment Pls (previously known as CDC Group), RBL Bank, International Finance Corporation, NMI Frontier Fund KS, Lok Capital Growth Fund, Small Industries Development Bank of India, Faering Capital India Evolving Fund, Hero Enterprises Partner Ventures, responsAbility Participations Mauritius, Aavishkaar Bharat Fund and a host of insurance companies hold the balance.

Following the IPO, promoter holding will come down to 69.28%. According to the Reserve Bank of India's latest direction, promoters will get 15 years from the date of inception of the bank to reduce their stake to 26%. Utkarsh, once an NBFC-MFI, started its banking journey on January 23, 2017.