Investors Rejoice: Utkarsh Small Finance Banks on Growth with ₹950 Crore Rights Issue

Updated: October 08, 2025 12:36

Image Source: Ebharat.com

Utkarsh Small Finance Bank has announced a significant rights issue worth ₹9.49 billion (₹950 crore) priced at ₹14 per share. The capital raise aims to strengthen the bank’s balance sheet, support growth initiatives, and enhance its lending capacity across rural and semi-urban markets in India.

Utkarsh Small Finance Bank Limited, a prominent player in India's small finance banking sector, has announced the launch of a rights issue valued at approximately ₹9.49 billion. The issue price is set at ₹14 per equity share. This fundraising initiative represents a strategic move to reinforce the bank’s capital base, enabling expansion of its lending portfolio and sustaining growth momentum.

Rights Issue Size and Price

The bank plans to raise ₹9.49 billion through a rights issue at the price of ₹14 per share.
The issue is open to existing shareholders, allowing them to purchase additional shares in proportion to their current holdings.
This move aims to improve capital adequacy ratios in line with regulatory norms and growth plans.

Purpose of Fundraising

The proceeds from the rights issue will be utilized to augment Tier I capital, supporting the bank’s credit expansion plans.
Strengthening the capital base aids risk management, operational resilience, and future-proofing growth potential.
The funds will also back new business initiatives and increase the bank’s outreach in underserved regions.

Operational and Market Position

Utkarsh Small Finance has a strong presence in rural and semi-urban India, focusing on inclusive banking solutions.
The rights issue aligns with the bank’s objective to deepen penetration in microfinance, MSME lending, and retail banking segments.
Existing shareholders have the opportunity to increase their stake, reflecting confidence in the bank’s vision and performance.

Regulatory Compliance and Timeline

The issue is subject to approvals from SEBI, stock exchanges, and the Reserve Bank of India.
The board committee will finalize the entitlement ratio, record date, and payment terms shortly.
Upon completion, the equity shares issued will be listed on NSE and BSE, enhancing market liquidity.

Sources: Utkarsh Small Finance Bank disclosures, AngelOne, NSE & BSE filings, Screener.in

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