1 min read.Updated: 28 Apr 2016, 03:20 AM ISTAnkit Doshi
Ujjivan sold about 12.6 million shares through the anchor book, a portion of IPO that bankers can allot to institutional investors on a discretionary basis
Mumbai: Ujjivan Financial Services Ltd, the second of the 10 small finance bank (SFB) licensee looking to list on stock exchanges, on Wednesday raised ₹ 264.74 crore from anchor investors, the company said in a stock exchange filing.
Ujjivan sold about 12.6 million shares to 17 domestic institutional investors (DIIs) at ₹ 210 per share, the upper end of the ₹ 207-210 price band for the three-day initial public offering (IPO) starting on Thursday. The issue will close on 2 May.
Investors acquiring shares in the anchor allotment included Birla Sun Life Asset Management Co. Ltd, ICICI Prudential Asset Management Co. Ltd, Reliance Life Insurance Co. Ltd and UTI Asset Management Co. Ltd, among others.
The anchor book is that portion of the IPO that bankers can allot to institutional investors on a discretionary basis. Anchor-book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.
Through its IPO, Ujjivan plans to raise ₹ 358.16 crore, while existing private equity investors in the company are looking to pare their stakes to ensure the company’s compliance with RBI’s norms of foreign ownership for SFBs, which require foreign ownership to be capped at 49%.
Foreign holding will reduce to around 44-45% after the share sale, the company’s chief financial officer Sudha Suresh told reporters last week. Foreign investors hold about 77% in the company at present. As of 31 March 2015, foreign investors owned 88.69% in Ujjivan.
Investors selling their shares through the IPO include World Bank arm International Finance Corp., impact investment funds Elevar and India Financial Inclusion Fund, Dutch development finance institution FMO, Sarva Capital, Women’s World Banking Capital Partners, Wolfensohn Capital Partners and Mauritius Unitus Corp.
In February, Ujjivan raised fresh capital to the tune of ₹ 292 crore in a so-called pre-IPO round. The company expects to start its SFB in the first quarter of 2017, the company said.
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