Ujjivan Financial Services has raised Rs 300 crore from investors through private placement ahead of its initial public offering (IPO).
A clutch of investors including HDFC Life, Bajaj Allianz , Kotak Mahindra Life Insurance and Sundaram AMC, were allotted shares in the pre-IPO placement, the company said in an official statement.
Ujjivan is among ten lenders who received in-principle approvals from the Reserve Bank of India for setting up small finance bank (SFB).
The Bengaluru-based microfinance company has already filed the draft prospectus for the IPO, which Sebi is yet to approve. Sources told FE that Ujjivan plans to raise close to R1,200 crore through the initial share sale.
The IPO consists of a fresh issue worth Rs 650 crore and an offer for sale of up to 2.49 crore shares, DRHP data showed. Eight shareholders, including India Financial Inclusion Fund and Mauritius Unitus Corporation, are making partial exit from the company through the public issue.
Kotak Mahindra, Axis Capital, ICICI Securities and IIFL are the book running lead managers for the public issue.
Ujjivan started operations as a non-banking financial company (NBFC) in 2005 with a joint liability group lending model for providing collateral-free and small ticket-size loans to women. For the financial year ended March 31, 2015, the lender’s consolidated revenue stood at Rs 611.88 crore, against Rs 357.66 crore in FY14, DRHP data showed.
The IPO proceeds will be used towards augmenting the company’s capital base to meet capital requirements, the company said in the IPO filing. Ujjivan also intends to reduce its foreign shareholding in accordance with the requirements to set up a small finance bank.
The proposed share sale will make Ujjivan the second microfinance institution (MFI) to go public. Currently, SKS Microfinance is the only MFI listed on the bourses. SKS Microfinance raised Rs 1,654 crore through the initial share sale in 2010, stock exchanges data showed.
Equitas Holdings – another micro lender which has received in-principle approval from the RBI to set up a SFB – has also filed the DRHP with Sebi for an IPO.
So far in the calendar year 2016, three companies have raised more than Rs 1,200 crore through IPOs – Prime Data showed. Pune-based anti-virus provider Quick Heal Technologies was the latest company to go public.