Ujjivan Small Finance Bank announced on Wednesday that its initial public offering (IPO) will be open for subscription from December 2 till December 4, 2019. The price band for the issue has been fixed at Rs 36-37 per share.
Microfinance lender Ujjivan Financial Services, which is the holding company of Ujjivan Small Finance Bank, plans to raise Rs 750 crore through the IPO that will see fresh issuance of shares.
Investors need to bid for minimum 400 equity shares and in multiples of 400 shares thereafter.
Ujjivan Small Finance Bank said in its red herring prospectus (RHP) that proceeds from the IPO would be utilised towards augmenting its tier-1 capital base to meet future requirements, and also to meet issue expenses.
Notably, the IPO includes a reservation of equity shares aggregating up to around Rs 75 crore for subscription by eligible shareholders of Ujjivan Financial Services. These shareholders will also get a discount of Rs 2 per share on the final issue price.
The book running lead managers to the IPO are Kotak Mahindra Capital Company, IIFL Securities and JM Financial. Karvy Fintech Pvt. Ltd is the registrar to the issue.
It is interesting to note that Ujjivan Small Finance Bank has reduced its IPO size after it managed to raise Rs 250 crore in a pre-IPO funding round earlier this month.
The bank had filed its draft prospectus for the IPO on 14 August and received market regulator Securities and Exchange Board of India’s (Sebi’s) approval for the issue on October 22.