Ujjivan Small Finance Bank’s initial public offering (IPO) will be open for subscription from December 2 till December 4, 2019. The lender, which is a subsidiary of Ujjivan Financial Services Ltd, is aiming to raise Rs 750 crore through this public issue. If you are planning to invest your money in the IPO, here are some key details you should know:
— Ujjivan Small Finance Bank has launched the IPO at a price band of Rs 36-37 per equity share, a premium of Rs 26-27 over its face value of Rs 10 each.
— Investors need to put in bids for a minimum 400 equity shares, and in multiples of 400 thereafter.
— The Ujjivan Small Finance Bank IPO comprises a fresh issuance of shares worth Rs 750 crore.
— The issue includes a reservation of Rs 75 crore worth of shares for subscription by eligible shareholders of Ujjivan Financial Services. They will be getting shares at a discount of Rs 2 apiece.
— Ujjivan Small Finance Bank proposes to utilize the net proceeds from the issue towards augmenting its tier-1 capital base to meet its future capital requirements. The proceeds will also be used towards meeting the expenses in relation to the issue.
— The bank has already garnered Rs 303.75 crore from anchor investorsincluding marquee names like the Government of Singapore, Goldman Sachs India, HDFC Life Insurance Company etc.,
— Kotak Mahindra Capital Company, IIFL Securities and JM Financial are book running lead managers to the issue. Shares are proposed to be listed on both BSE and NSE.
— About the bank: Ujjivan Small Finance Bank offers all banking products with main focus on lending to micro banking segment. As of September 30 2019, its operations were spread across 24 states and union territories with 552 banking outlets and 441 ATMs.
— Ujjivan Small Finance Bank’s long-term bank facilities have been rated A+ stable by CARE Ratings, its certificate of deposits have been rated A1+ by CRISIL.