Ujjivan Financial Services has said that the price band of its upcoming IPO is fixed in the range of INR207-210 per share. The price band is close to what IPO Central predicted based on the pre-IPO transaction. The IPO opens on 28 April 2016 for subscription and closes on 2 May 2016. Investors can place bids for minimum 70 shares and in multiples thereafter. As per the price band, the issue size is in the range of INR875 crore (INR8.75 billion) and INR882.5 crore. The IPO will be managed by Kotak Mahindra Capital Company Limited, Axis Capital Limited, ICICI Securities Limited and IIFL Holdings Limited while Karvy Computershare Private Limited will be the registrar.
The IPO will raise INR358.2 crore by issuing new shares while existing shareholders will sell 24,968,332 shares. Shareholders participating in the IPO are CX Partners (through Elevar), FMO (Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V.), IFC (International Finance Corporation), IFIF (India Financial Inclusion Fund), MUC (Mauritius Unitius Corporation), Sarva Capital, WCP Holdings and WWB (Women’s World Banking Capital Partners, L.P.).
CDC is the biggest shareholder in Ujjivan Financial Services with 10.8%, while IFC and CX Partners own 10.08% and 10.66%, respectively. Sequoia Capital is another prominent name among its investors.
Biggest shareholders in Ujjivan Financial Services
|Name of shareholder||Equity Shares||Percentage (%)|
|CDC Group Plc||10,932,696||10.80|
|Alena Private Limited||10,790,943||10.66|
|International Finance Corporation||10,202,406||10.08|
|NewQuest Asia Investments II Limited||8,199,522||8.10|
|Elevar Equity Mauritius||6,355,684||6.28|
|Sarva Capital LLC||5,870,426||5.80|
|Women’s World Banking Capital Partners, L.P.||5,406,628||5.34|
|Bajaj Holdings & Investment Limited||5,124,702||5.06|
|Sequoia Capital India Investments III||4,201,276||4.15|
|India Financial Inclusion Fund||3,508,772||3.47|
Ujjivan Financial Services was one of the 10 companies which last year won in-principle approval from the Reserve Bank of India (RBI) to set up small finance bank (SFB). According to guidelines for SFBs, Ujjivan needs to bring down foreign shareholding to 49% by 6 April 2017. Currently, 77.1% equity of Ujjivan is with foreign shareholders.
Ujjivan Financial Services will follow peer microlender Equitas Holdings which had a stellar listing today. For FY2015, Ujjivan’s net profit rose 38% from INR58.4 crore to INR75.7 crore and it disbursed loans worth INR432.8 crore with repayment rate of around 99.8%.
Ujjivan’s financial performance (in INR crore)
|Profit/(loss) after tax||11.6||0.1||32.8||58.4||75.7|
Source: Ujjivan Financial Services’ Red Herring Prospectus