Utkarsh SFB shares rise over 5% as board approves terms for ₹950 crore rights issue

The company will be issuing fully paid-up equity shares of a face value of ₹10 each. Utkarsh Small Finance Bank's board has approved the issue of 67.79 crore equity shares to eligible investors as part of this ₹950 crore rights issue.

The rights issue price has been set at “₹14/- (Rupees Fourteen only) per fully paid-up equity share [including a premium of ₹4/- (Rupees Four only) per fully paid-up equity share of face value of ₹10 (Rupees Ten) each]. The entire issue price will be payable at the time of making the application,” the firm further said in a regulatory filing.

A rights issue is a process through which a company raises additional capital by offering its existing shareholders the opportunity to buy new shares at a discounted price, usually in proportion to their current holdings.

The entitlement ratio for the rights issue will be one fully paid-up rights equity share for every 13 fully paid-up equity shares of face value of ₹10 each, held by eligible equity shareholders of the Bank as of the Record Date.

The small finance bank has fixed October 14 as the record date to determine shareholders eligible for the rights entitlement. The rights issue will open on October 24, 2025, and close on November 3.

The last date for on-market renunciations of rights entitlements by existing shareholders is October 28, while the deadline for off-market renunciations is set for October 31.

DAM Capital Advisors Limited has been appointed as advisor and CMS IndusLaw as legal counsel for the Rights Issue.

At 1:43 PM, Utkarsh Small Finance Bank shares were trading at ₹22.44 apiece on NSE, jumping 2.94%.

The stock has gained almost 5% in the last five trading sessions, while for six months’ time, it has lost over 5%. Since the beginning of the year, shares of the small finance bank have declined 35%.

Utkarsh Small Finance Bank Limited provides banking and financial services with a strong focus on microfinance for underserved and unserved communities. Its lending activities are primarily concentrated in rural and semi-urban areas, while its other banking services are available across the country.