India: Utkarsh Small Finance Bank files for IPO to raise $180m

Utkarsh Small Finance Bank has filed draft share sale documents with the Securities Exchange Board of India to raise 1,350 crore through an initial public offering (IPO).

The offer comprises a fresh issue of up to 750 crore and an offer for sale by Utkarsh Coreinvest Ltd, aggregating up to 600 crore.

ICICI Securities, IIFL Securities and Kotak Investment Banking will manage the share sale.

The lender said that it may consider a pre-IPO placement of shares of up to 250 crore after consultations with the investment banks managing the share sale.

The proceeds from the issue will be utilized towards the augmentation of Tier-I capital base to meet its future capital requirements. As of September 2020, its CRAR was 24.87% (Tier I capital of 19%).

For the fiscal year 2020, the total income of the lender was 1,406.24 crore against 958.25 crore a year ago. Net profit for the period was 186.74 crore against 110.87 crore last year. Provisions for the period were 163.55 crore against 136.05 crore in the year-ago period.

As of September 2020, its total deposits stood at 5,969.30 crore, while advances were 6,606.58 crore. Its gross non-performing assets (NPAs) were at 0.64% and provision coverage ratio at 101.99%.

The lender has warned that its NPAs may increase because of several factors, including increased competition, adverse effects on the business and the results of operations of borrowers, a rise in unemployment, a sharp and sustained rise in interest rate, slow industrial and business growth, changes in customer behaviour and demographic patterns, political influences and central and state government decisions and changes in regulations.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.