Mumbai: Ujjivan Financial Services Ltd, the microfinance lender that was granted a licence to convert into a small bank, and healthcare firm Thyrocare Technologies Ltd on Thursday filed their draft initial public offer documents with the capital markets regulator Securities and Exchange Board of India (Sebi).
According to the draft red herring prospectus filed by Ujjivan, available on the website of the investment banks managing the share sale, the company is looking to raise ₹ 650 crore through the sale of new shares. Several private equity investors in the company including World Bank arm International Finance Corp. and Netherlands’ development finance institution FMO, are also looking to sell part of their stakes through an offer for sale.
Including the offer for sale component, the share sale is expected to be around ₹ 1,500 crore, said two people aware of the development, requesting anonymity. On 19 October, Mint reported that Ujjivan had hired investment banks and was planning an IPO.
“Our company proposes to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements," the firm said in its filing.
Ujjivan received the Reserve Bank of India’s (RBI) in-principle approval for starting a small finance bank in September.
The firm, in which foreigners owned 88.69% as on 31 March, has to ensure that overseas shareholding in the company drops to 49%, one of the conditions that the company has to meet to become a small finance bank.
Ujjivan is the second of the 10 companies that won RBI approval for setting up small finance banks to initiate work on selling shares to the public. Chennai-based microfinance lender Equitas Holdings Ltd filed share sale documents with Sebi. It is planning to raise about ₹ 2,000 crore through its IPO. Equitas filed its draft IPO paper with Sebi on 16 October.
Founded in 2006, Ujjivan’s investors include International Finance Corp. (IFC), UK’s development finance institution CDC, venture capital firm Sequoia Capital and home-grown private equity fund CX Partners.
CDC is currently the biggest shareholder in the company with a 12.69% stake, followed by IFC and CX Partners, which own 11.84% and 10.69%, respectively.
In the year ended 31 March, Ujjivan’s revenue rose 72% to ₹ 599.3 crore from a year earlier. Net profit rose 38% to ₹ 75.8 crore from ₹ 55 crore. It disbursed loans worth ₹ 4,328 crore in the year and had a network of 423 branches across the country.
According to the share sale documents filed by Thyrocare Technologies, the firm’s initial share issuance is an offer for sale by private equity investor CX Partners and the firm’s promoters. CX Partners which holds 21% stake in the company is looking to sell almost 90% of its holding through the IPO. Other PE investors in the company—Norwest Venture Partners and Samara Capital are not selling their stake through the offer. Norwest and Samara hold 9.43% and 2% respectively in Thyrocare Technologies.
Thyrocare is a pan-India diagnostic chain, which conducts an array of medical diagnostic tests and profiles of tests that center on early detection and management of disorders and diseases. As of 30 November, the firm offered 192 tests and 54 profiles of tests to detect a number of disorders, including thyroid disorders, growth disorders, metabolism disorders, auto-immunity, diabetes, anemia, cardiovascular disorders, infertility and various infectious diseases.
For the financial year 2014-15, the firm reported a revenue of ₹ 187 crore, as compared to a revenue of ₹ 156.5 in the previous financial year. In 2014-15, the company’s profit stood at ₹ 48.4 crore, as compared to ₹ 46.1 crore an year ago.
32 other companies have also filed for an IPO with Sebi in 2015, the year when 21 firms raised ₹ 13,603 crore by selling shares to the public for the first time, according to data from primary market tracker Prime Database.