Ujjivan’s Rs 885-cr IPO opens on Thursday

PTI Mumbai | Updated on January 20, 2018

Microfinance player Ujjivan Financial Services will hit capital markets tomorrow to raise nearly Rs 885 crore through an initial public offering.

Ujjivan, which will become the second microlender to go public, has already received in-principle approval to set up a small finance bank. Earlier this month, another microfinance player, Equitas Holdings came out with its IPO.

The public issue of Ujjivan, which is scheduled to close on May 2, comprises fresh issuance of shares worth Rs 358.16 crore and an offer for sale of up to 2,49,68,332 shares by the existing shareholders.

It has fixed the price band at Rs 207-210 per share.

Three foreign investors — Mauritius Unitus Corporation (2.49 per cent), WCP Holdings III (3.06 per cent) and Women’s World Banking Capital Partners (5.34 per cent) — will be completely exiting the company through the IPO.

“Out of the Rs 885-crore IPO, the company will garner Rs 358 crore from fresh capital and the balance is a secondary transaction through an OFS by the existing foreign shareholders who will be exiting their investment,” Ujjivan Chief Financial Officer Sudha Suresh had said.

The offer will bring down the foreign shareholding in the microlender to around 45 per cent, from the current 77 per cent, which is required as per RBI guidelines for setting up a small finance bank.

The company, which has already raised Rs 292 crore through a pre-IPO placement, aims to launch a small finance bank in the first quarter of 2017.

Kotak Mahindra Capital, Axis Capital, ICICI Securities and IIFL Holdings are the lead managers to the offer.

Published on April 27, 2016

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