Ujjivan Small Finance Bank on Monday opened its qualified institutional placement to raise up to Rs 600 crore. The bank has set the floor price for the issue at Rs 21.93 per share, according to an exchange filing. The floor price is at 15.4% discount to Monday’s closing price of Rs 25.30 on the BSE. The stock has risen 28% since August 12, BSE data showed.
The Bengaluru-based lender in February said it plans to raise Rs 600 crore by issuing shares on a QIP basis. The QIP is one of the steps to complete the bank’s reverse merger with its parent entity Ujjivan Financial Services.
The bank aims to complete the reverse merger by calendar year 2023. For that to happen, the lender needs to complete the QIP issue, Ittira Davis, managing director and chief executive officer, had said earlier. After the QIP, the bank will start the process of applying for various regulatory approvals.
The bank’s capital adequacy ratio declined to 20.03% as of June 30, against 25.88% in the year-ago period. The bank disbursed loans of Rs 4,326 crore in Q1FY23, taking its total loan book to Rs 19,409 crore, up by 38% year-on-year, while its deposits grew 35%.