Money & Banking

Ujjivan Bank files draft red herring prospectus with SEBI

PTI Bengaluru | Updated on August 17, 2019 Published on August 17, 2019

File photo   -  istock.com/PictureLake

The shares being offered are at a face value of Rs 10 each, the USFB said

Ujjivan Small Finance Bank (USFB) filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).

According to the DRHP, the company seeks to raise Rs 1,200 crore, including reservation of equity shares of upto Rs 120 crore.

The shares being offered are at a face value of Rs 10 each, the USFB said in a statement here.

In consultation with the book running leading managers (BRLMs), USFB may consider a pre-issue placement of an aggregate amount not exceeding Rs 300 crore (pre-IPO placement), says the DRHP filed by USFB.

The pre-IPO placement, if undertaken, would be at a price to be decided by USFB in consultation with the BRLMs and the pre-IPO placement would be undertaken prior to filing of the red herring prospectus with the ROC.

If the pre-IPO placement is undertaken, the amount raised from the pre-IPO placement would be reduced from the issue, subject to the minimum issue size constituting at least 10 per cent of the post-issue paid-up equity share capital of USFB.

Ujjivan said it has served4.72 million customers from its 474 banking outlets, which include the 120 unbanked rural centres as of June, 2019.

In FY-19, the SFB operationalised 287 banking outlets and has a network of 387 ATMs.

USFB has appointed Kotak Mahindra Capital Company Limited, IIFL Securities Limited and JM Financial Limited as the running lead managers to the issue.

The bank has posted consistent gains on the back of its focus on technology-led initiatives like customer relationship and document management systems, biometric ATMs and tablet-based loan origination systems.

Published on August 17, 2019
This article is closed for comments.
Please Email the Editor