Nirmal Bang has come out with its report on Ujjivan Small Finance Bank. The research firm has recommended to "Subscribe'' the IPO in its research report as on November 28, 2019
Nirmal Bang's IPO report on Ujjivan Small Finance Bank
USFB’s (Ujjivan Small Finance Bank’s) promoter UFSL (Ujjivan Financial Services Ltd) commenced operations as an NBFC in 2005 with a focus on MFI-JLG loans (joint liability group). In Oct 2015, UFSL received RBI In-Principle Approval to establish an SFB, following which it incorporated USFB as a subsidiary. UFSL, thereafter transferred its business to USFB, which commenced its operations from Feb, 2017. As on Sep 2019, USFB had advances of Rs. 12,780 Cr and a network of 552 branches. The top 4 products of the bank comprise of Group loans (MFI, 70% mix), Micro individual (8% mix), Affordable Housing (9% mix) and MSE (7% mix).
Valuation and Outlook
USFB is being offered at trailing P/ABV of 2.1x on post diluted basis leaving GOOD scope for appreciation and thus we recommend subscribing to the issue.
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