The shares of Utkarsh Small Finance Bank ended the session on Friday with 18% gains after it rose nearly 20% after the lender announced that it has allotted over 5.71 crore shares to investor Madhusudan Kela’s fund house Cohesion MK Best Ideas Sub-Trust as part of its rights issue.
While Kela’s fund received the largest allotment in the rights issue, several marquee investors also participated, according to the exchange filing on Friday. India Capital Fund Ltd., Mauritius received 4.4 crore shares and Kotak Mahindra Life Insurance Company got 4.21 crore shares. ICICI Prudential Life Insurance Company also received 3.57 crore shares in the right issue.
The other investors include FLC Investco LLC., Singularity Large Value Fund III and Massachusetts Institute of Technology.
Utkarsh Small Finance Bank had received approval to raise up to Rs 950 crore via rights issue from its board of directors on Oct. 1.
Utkarsh Small Finance Bank was incorporated on April 30, 2016, and is engaged in providing banking and financial services with a focus on providing microfinance to the underserved and unserved sections of the country. The Bank’s lending activities are primarily focused in rural and semi-urban locations of the country while its other services are spread across the country.
The bank commenced its operations on January 23, 2017, pursuant to the small finance banking licence granted by RBI on November 25, 2016.
Utkarsh Small Finance Bank Shares Today
The shares of the company rose 19.99% on Friday to Rs 22.03 per share but pared gains to close 18.25% higher at Rs 21.71 apiece. Utkarsh Small Finance Bank’s shares have fallen 47.14% in the last 12 months and 36.13% year-to-date.
Out of two analysts tracking the company, one maintains a ‘buy’ rating and one recommends a ‘hold’, according to Bloomberg data. The average 12-month consensus price target of Rs 27.17 implies an upside of 2.1%.
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