Ujjivan Financial Services, the micro-lender which has won a provisional license to be a small finance bank (SFB), is expected to launch its initial public offering (IPO) to raise around up to Rs 850-900 crore. Of the total issue size, the company will raise about Rs 350 crore in fresh capital, while existing shareholders will sell 24.96 million shares, with an estimated worth of Rs 514-524 crore.
The issue will open for subscription on April 28, 2016 and will close on May 02, 2016. The shares will be listed on BSE as well as NSE. The face value of the share is Rs 10 and is priced 20.70 times of its face value on the lower side and 21 times on the higher side.
The company proposes to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements. Further, the company expects to receive the benefits of listing of the equity shares on the stock exchanges, enhancement of the company’s brand name and creation of a public market for its equity shares in India. In addition, the company intends to reduce its foreign shareholding in accordance with the requirements of the SFB In-principle Approval to set up an SFB.
Not more than 50 per cent of the issue will be allocated to qualified institutional buyers (QIBs), including 5 per cent to the mutual funds. Further, not less than 15 per cent of the issue will be available for the non-institutional bidders and the remaining 35 per cent for the retail investors.
Book running lead managers to the issue are Kotak Mahindra Capital Company, Axis Capital, IIFL Holdings and ICICI Securities, while the compliance officer for the issue is Sanjeev Barnwal.
The company offers a diverse range of loan products to cater to the specific requirements of its customers. Its products can be classified under two broad categories, namely, group loans and individual loans.
