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Last Updated : Apr 21, 2016 06:59 PM IST | Source: PTI

Ujjivan's Rs 885-cr IPO opens on April 28

Ujjivan, which will become the second microlender to go public, is a recipient of an in-principal approval to set up a small finance bank.

 
 
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Microfinance player Ujjivan Financial Services will open its Rs 885-crore initial public float on April 28 and has fixed the price band at Rs 207-210 per share.


Ujjivan, which will become the second microlender to go public, is a recipient of an in-principal approval to set up a small finance bank.


The IPO, opening on April 28 and closing on May 2, involves fresh issuance of shares worth Rs 358 crore by the company and a Rs 527-crore offer-for-sale by its overseas investors who are exiting or paring their stakes in the company, Ujjivan Chief Financial Officer Sudha Suresh told reporters here today.

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Three foreign investors -- Mauritius Unitus Corporation (2.49 per cent), WCP Holdings III (3.06 per cent) and Women's World Banking Capital Partners (5.34 per cent) will be completely exiting the company through the IPO, Suresh said.


"Out of the Rs 885-crore IPO, the company will garner Rs 358 crore in fresh capital and the balance is a secondary transaction through an OFS by the existing foreign shareholders who will be exiting their investment," Suresh said.


The offer will bring down the foreign shareholding in the microlender to around 45 per cent from the current 77 per cent, which is required as per RBI guidelines for setting up the small finance bank.


The IPO proceeds will augment the company's capital base and it will be using it for growth over the next five years, Suresh said.


The company has raised Rs 292 crore through a pre-IPO placement.


The company is aiming to launch small finance bank during the first quarter of 2017, managing director and CEO Samit Ghosh said.


Kotak Mahindra Capital, Axis Capital, ICICI Securities and IIFL Holdings are the lead managers to the offer.



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First Published on Apr 21, 2016 06:52 pm
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