Utkarsh Small Finance Bank has announced a significant move to strengthen its capital base through a ₹950 crore rights issue. The bank's Board of Directors has given the green light for this strategic financial decision, which aims to bolster the bank's position in the competitive banking sector.

Key Details of the Rights Issue

Shareholder Information

The bank has taken steps to ensure that eligible shareholders can participate in this rights issue:

• Rights entitlements have been credited to shareholders' demat accounts under ISIN INE735W20017.
• Issue materials were dispatched via email on October 16, 2025, to shareholders with Indian addresses.

Promoter's Stance

Utkarsh CoreInvest Limited, the bank's promoter, has decided to renounce its rights entitlements to specific investors. This move could potentially bring new strategic investors into the bank's fold.

Regulatory Compliance

The bank has ensured compliance with regulatory requirements:

• The rights issue announcement was published in national and regional newspapers on October 17, 2025.
• The disclosure is available on the bank's website ( www.utkarsh.bank ) for public access.

Impact and Outlook

This rights issue is a significant step for Utkarsh Small Finance Bank, potentially providing it with the capital needed for expansion and strengthening its market position. The decision to conduct a rights issue suggests the bank's commitment to giving existing shareholders the opportunity to maintain their stake in the company's growth.

As the banking sector continues to evolve, particularly in the small finance segment, this capital raise could enable Utkarsh Small Finance Bank to enhance its product offerings, improve its technology infrastructure, and expand its reach in the competitive Indian banking landscape.

Utkarsh Small Finance Bank has taken a significant step to bolster its capital base through a rights issue. The bank's board of directors has approved the issuance of equity shares on a rights basis, aiming to raise up to ₹949.08 crore. This move is expected to strengthen the bank's financial position and support its growth initiatives.

Key Details of the Rights Issue

Utkarsh Small Finance Bank has set the price for its Rs 950 crore rights issue at Rs 14 per share, representing a 37.5% discount to Wednesday's closing price. The bank will issue approximately 68 crore equity shares with a face value of Rs 10, with the record date fixed for October 14.

The board meeting finalized the following terms for the rights issue:

Timeline and Trading Details

The rights issue is scheduled with the following key dates:

• Issue Opening Date: October 22
• Last Date for On-Market Renunciation: October 28
• Issue Closing Date: November 5
• Record Date: October 15

Shareholders should note that the last date for off-market renunciation of Rights Entitlements (REs) is set for October 31. The bank will make arrangements with NSDL and CDSL for the crediting of REs in dematerialized form to eligible shareholders' demat accounts.

Impact on Share Capital

Post the rights issue, assuming full subscription, the bank's paid-up share capital is expected to increase significantly:

• Pre-Issue: 1,10,16,09,900 fully paid-up equity shares
• Post-Issue: 1,77,95,23,684 fully paid-up equity shares

Ownership Structure and Stock Performance

The promoter Utkarsh CoreInvest holds a 68.92% stake in the bank, while institutional investors hold 13.14% and small investors own 17.94%. The stock closed at Rs 22.40 on BSE Wednesday, down 64% from its all-time high of Rs 62.75.

Financial Performance

The bank's gross non-performing assets ratio increased to 11.4% at the end of June from 2.8% a year earlier, resulting in a net loss of Rs 239 crore in the first quarter. Unsecured loans comprise about 55% of the bank's total portfolio of Rs 19,224 crore.

Professional Guidance

Utkarsh Small Finance Bank has appointed DAM Capital Advisors Limited as the advisor and CMS IndusLaw as the legal counsel for this rights issue. These appointments underscore the bank's commitment to ensuring a smooth and compliant capital raising process.

Regulatory Compliance

The bank has received in-principle approvals from both the BSE Limited and the National Stock Exchange of India Limited for the proposed rights issue. This development aligns with the regulatory requirements and paves the way for the successful execution of the capital raise.

Investors and stakeholders are advised to refer to the official Letter of Offer for comprehensive details about the rights issue terms and conditions.