Utkarsh Small Finance Bank has received approval from the Securities and Exchange Board of India (Sebi) to raise Rs 500 crore through an initial public offering (IPO).
The Varanasi-based small finance bank’s IPO comprises a fresh issue of shares and the entire proceeds will go to the niche lender.
Utkarsh may also consider the issue of securities aggregating up to Rs 100 crore in a pre IPO placement round. If such a placement is undertaken, the fresh issue size will be reduced.
The small bank, which filed fresh draft papers with the market regulator in August, obtained its observation letter on October 21, an update with Sebi showed on Tuesday.
There are four SFBs that are listed on the bourses at present. These include AU Small Finance Bank, Ujjivan Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank.
