Utkarsh Small Finance Bank has successfully concluded its rights issue, raising approximately Rs. 949.08 crores through the allotment of 67,79,13,784 equity shares. The bank's Capital Structuring and Fund Raise Committee approved the allotment on November 05, 2025, marking a significant milestone in the bank's capital raising efforts.

Key Details of the Rights Issue

Impact on Share Capital

The successful completion of the rights issue has led to a substantial increase in Utkarsh Small Finance Bank's paid-up share capital. The changes in the bank's capital structure are as follows:

This rights issue represents a significant capital infusion for Utkarsh Small Finance Bank, potentially strengthening its financial position and supporting future growth initiatives. The additional capital may enable the bank to expand its operations, improve its lending capacity, and enhance its overall market presence in the small finance banking sector.

Investors and market observers may want to monitor how Utkarsh Small Finance Bank utilizes this newly raised capital and its impact on the bank's financial performance in the coming quarters.

Utkarsh Small Finance Bank has successfully completed a significant rights issue, leading to a substantial surge in its stock price. The bank's shares closed 18.25% higher at Rs 21.71 after announcing the allotment of over 5.71 crore shares to Madhusudan Kela's fund house Cohesion MK Best Ideas Sub-Trust as part of its rights issue.

The rights issue, which involved up to 67,79,13,784 fully paid-up equity shares, attracted a diverse group of 37 specific investors. Applications were received before 11 a.m. on the opening day of the issue, in compliance with SEBI regulations.

Key Investors

Some of the major institutional players participating in the rights issue include:

The diverse investor base includes insurance companies, foreign institutional investors, domestic and international funds, trusts, private companies, and individual investors.

Financial Implications

The bank had received board approval to raise up to Rs 950.00 crore through the rights issue. Despite the day's significant gains, it's worth noting that the stock has experienced a decline of 47.14% over the past 12 months and 36.13% year-to-date.

Market Outlook

Analyst consensus shows a 12-month price target of Rs 27.17 for Utkarsh Small Finance Bank shares, indicating a potential upside of 2.10% from the current price.

Regulatory Compliance

The bank emphasized that all applications were submitted in compliance with Regulation 77B(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, underscoring its commitment to transparency and proper governance in capital-raising activities.

For more details on the application process and allotment of equity shares, interested parties are directed to refer to the "Terms of the Issue" section on page 79 of the Letter of Offer, as mentioned in the bank's disclosure.