Utkarsh Small Finance Bank has made a significant move in the capital markets by issuing 5.7 crore shares to Cohesion MK Best Ideas Sub-Trust, an investment vehicle associated with renowned investor Madhu Kela. This share issuance marks a substantial equity transaction for the small finance bank, potentially impacting its ownership structure and capital base.

Details of the Share Issuance

The bank has confirmed the application for shares by Cohesion MK Best Ideas Sub-Trust as part of a larger rights issue. Here are the key details:

Broader Context of the Rights Issue

The share issuance to Madhu Kela's trust is part of a larger rights issue by Utkarsh Small Finance Bank. The bank has received applications from various institutional and individual investors. Some of the other significant participants in this rights issue include:

Compliance with SEBI Regulations

The bank has stated that all identified specific investors, including Cohesion MK Best Ideas Sub-Trust, submitted their applications before 11 a.m. on the issue opening date, October 24, 2025. This is in compliance with Regulation 77B(2) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Implications for Utkarsh Small Finance Bank

This significant share issuance, particularly to a trust associated with a prominent investor like Madhu Kela, may have several implications for Utkarsh Small Finance Bank:

1. Capital Infusion: The rights issue is likely to result in a substantial capital infusion for the bank, potentially strengthening its financial position.

2. Investor Confidence: The participation of well-known investors and institutions may signal strong confidence in the bank's future prospects.

3. Expansion Plans: With additional capital, the bank may be better positioned to fund its growth and expansion strategies.

4. Market Perception: The involvement of high-profile investors could positively influence market perception of the bank's stock.

Investors and market watchers will likely keep a close eye on how this capital infusion impacts Utkarsh Small Finance Bank's operations and financial performance in the coming quarters.

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.