Ujjivan Financial Services fixes IPO price at INR207-210 per share

Ujjivan Financial Services fixes IPO price at INR207-210 per share

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Ujjivan Financial Services Samit Ghosh
Samit Ghosh, Managing Director and CEO, Ujjivan Financial Services

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
Total 70,593,055 69.77

SFB approval

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.

Read Also: Upcoming IPOs in 2016: IPOs worth at least INR13,500 crores in pipeline

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)

  FY2011 FY2012 FY2013 FY2014 FY2015
Total revenue 156.4 156.3 233.9 357.6 611.8
Total expenses 139.1 156.4 186.2 268.8 497.3
Profit/(loss) after tax 11.6 0.1 32.8 58.4 75.7

Source: Ujjivan Financial Services’ Red Herring Prospectus  

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