Ujjivan’s IPO to open on 28 April
1 min read . Updated: 21 Apr 2016, 04:16 AM IST
PremiumUjjivan will have to ensure that overseas shareholding in the company remains at or below 49% to meet one of the conditions set by the RBI to become an SFB
Mumbai: Ujjivan Financial Services Ltd, the micro-lender which has won a provisional license to be a small finance bank (SFB), is expected to launch its initial public offering (IPO) on 28 April to raise around up to ₹ 850-900 crore, three people familiar with the development said.
The price band for the issue is likely to be set between ₹ 207-Rs.210 per share, they said. The details of the IPO, for which it won regulatory approval on 25 February, are likely to be announced at a press meet on Thursday.
Of the total issue size, the company will raise about ₹ 350 crore in fresh capital, while existing shareholders will sell 24.96 million shares, with an estimated worth of ₹ 514-524 crore.
Even before the IPO opens, Ujjivan’s shares were quoting at a premium of ₹ 35-40 per share in the grey market, dealers said.
An email sent to the company’s public relations agency on Wednesday remained unanswered.
On 20 February, Mint reported that the Bengaluru-based SFB-licensee had raised ₹ 312.4 crore by issuing shares to a clutch of investors in a private placement round ahead of its planned IPO. The sale transaction valued the firm about ₹ 2,150 crore.
HDFC Standard Life Insurance Co. Ltd, Shriram Life Insurance Co. Ltd, Bajaj Allianz General Insurance Co. Ltd, Kotak Mahindra Old Mutual Life Insurance Co. Ltd and mutual fund Sundaram Asset Management Co. Ltd were among the investors that bought Ujjivan’s shares in the private placement to institutional investors.
Ujjivan will have to ensure that overseas shareholding in the company remains at or below 49% to meet one of the conditions set by the Reserve Bank of India (RBI) to become a small finance bank. This means that foreign investors cannot participate in Ujjivan’s public issue. Foreigners owned 90.57% in the company at the time of filing its draft proposal, Ujjivan said in its draft red herring prospectus.
Earlier this month, shares of Chennai-based microfinance lender Equitas was subscribed more than 17 times. The company raised a little over ₹ 1,500 crore from the public issue.
Equitas will debut on the bourses on Tuesday. Its shares, which were issued at ₹ 109-110 per share, were quoting a premium of ₹ 20-22 per share in the grey market, two dealers said, requesting anonymity.
