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Olympus Capital, Triodos, others invest pre-IPO money in Utkarsh Small Finance Bank
Photo Credit: 123RF.com

Utkarsh Small Finance Bank has raised Rs 240.5 crore (around $33 million) through a private placement of shares ahead of a proposed initial public offering. 

Participants in this round include Olympus Capital Asia, responsAbility, Aavishkaar Bharat Fund, Triodos, and Growth Catalyst Partners. 

Kotak Mahindra Capital, the investment banking arm of Kotak Mahindra, acted as the financial advisor to Utkarsh on this round. 

The development comes after the Varanasi-based bank filed a draft red herring prospectus for an IPO earlier this month. 

Per the DRHP, the offer would comprise a fresh issue up to Rs 750 crore and an offer for sale up to Rs 600 crore by promoter Utkarsh CoreInvest Ltd. 

The firm will use the net proceeds from the IPO to augment its Tier-I capital base. 

It may also consider a Rs 250 crore pre-placement offer in consultation with lead managers to its offer, which include ICICI Securities, IIFL Securities, and Kotak Mahindra Capital. 

The bank was incorporated in 2016 and began operations the next year. 

As of September, it had 528 outlets serving 2.74 million customers in rural and semi-urban areas in states including Bihar, Uttar Pradesh and Jharkhand. 

It says its deposits and disbursements have grown at a compound annual rate of 54.48% and 33.66%, respectively, between 2017-18 and 2019-20. 

According to VCCEdge, Utkarsh reported Rs 1,307.7 crore in earned interest for 2019-20, and net profit of Rs 766 crore for the same period. 

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