Ujjivan Small Finance Bank mops up Rs304cr from 18 anchor investors ahead of IPO

USFB, which seeks to raise Rs750cr, to augment its Tier 1 capital, has fixed a price band of Rs36-37/ share for the IPO.

Dec 02, 2019 08:12 IST India Infoline News Service

Initial Public Offer, IPO
Ujjivan Small Finance Bank (USFB), which caters to the unbanked urban poor and young middle-class customers, has mopped up Rs303.75cr from anchor investors ahead of its Initial Public Offering (IPO), which commences on December 2.

USFB, which seeks to raise Rs750cr, to augment its Tier 1 capital, has fixed a price band of Rs36-37/ share for the IPO.

According to a regulatory filing, USFB has finalised the allocation of 8,20,94,594 shares at Rs37 apiece to 18 anchor investors. Based on the price, the total proceeds would be to the tune of Rs303.75cr.

Government of Singapore, Monetary Authority of Singapore, CX Partners Fund, Aberdeen, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Sundaram Mutual Fund, Goldman Sachs India, ICICI Prudential participated in the anchor investor bidding.

The proposed Issue of USFB comprises a fresh issue of equity shares aggregating up to Rs750cr and a portion of the issue, aggregating up to Rs75cr, has been made available for the eligible UFSL shareholders, on a proportionate basis.

The shareholders of Ujjivan Financial Services will get shares at a discount of Rs2 per share to the final issue price. Ujjivan Financial Services, the promoter of Ujjivan Small Finance Bank, had commenced operations as an NBFC in 2005.

Collectively brokerage houses such as Angel Broking, Canara Bank Securities, Geojit Financial Services, ICICI Securities, Motilal Oswal Financial Services, SBICap Securities, SMC Global Securities, Ventura Securities have given a “subscribe” rating with a long term outlook keeping in mind its attractive pricing, growth prospects, maintained asset quality, improved financials, healthy return ratios besides its continued focus on garnering retail liability and CASA base.

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