Ujjivan Small Finance Bank (USFB) Limited IPO
(i) They are a mass-market focused SFB in India, catering to unserved and underserved segments and committed to building financial inclusion in the country. The Promoter, UFSL commenced operations as an NBFC in 2005 with the mission to provide a full range of financial services to the ‘economically active poor’ who were not adequately served by financial institutions.
(ii) UFSL’s erstwhile business was primarily based on the joint liability group-lending model for providing collateral-free, small ticket-size loans to economically active poor women. UFSL also offered individual loans to Micro and Small Enterprises (“MSEs”) and adopted an integrated approach to lending, which combined a customer touchpoint similar to microfinance, with the technology infrastructure and related back-end support functions similar to that of a retail bank.
(iii) As of June 30, 2019, they operated from 474 Banking Outlets that included 120 Banking Outlets in URCs (of which seven were business correspondent centers) and additionally operated 50 Asset Centres. As of June 30, 2019, they operated 96, 152, 157 and 69 Banking Outlets (including in URCs) in the North, South, East and West regions, respectively.
(iii) On October 7, 2015, UFSL received RBI In-Principle Approval to establish an SFB, following which it incorporated Ujjivan Small Finance Bank Limited as a wholly-owned subsidiary. UFSL, subsequent to obtaining RBI Final Approval on November 11, 2016, transferred its business undertaking comprising of lending and financing business to Small Finance Bank, which commenced its operations from February 1, 2017.
Now as per the RBI mandatory listing requirement, the small finance bank is coming up with an IPO.
Objects of the Ujjivan Small Finance Bank (USFB) Limited IPO:
Ujjivan Small Finance Bank (USFB) Limited IPO Details:
|Open Date:||Dec 02 2019|
|Close Date:||Dec 04 2019|
|Total Shares:||20.27 Crores|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||100% Book Building|
|Issue Size:||750 Crores Cr.|
|Lot Size:||400 Shares|
|Issue Price:||₹ 36-37 Per Equity Share|
|Listing Date:||Dec 12 2019|
Promoters And Management:
Financials of Ujjivan Small Finance Bank (USFB) Limited IPO:
|Particulars ( in Crs)||3MFY20||FY18-19||FY17-18|
|Net Interest Income (NII)||352||1106||861|
|Provisions and Contingencies (Other than tax)||66.7||109||312|
|Net Profit /(Loss)||94.4||199.2||6.8|
|Key Performance Indicators|
|Earnings per share||0.66||1.2||0.05|
|Equity and Preference Shares||164||164||164|
|Book value per share||11.67||11.09||10|
|Net Interest Margin%||10.51%||10.93%||10.31%|
Comparison With Peers:
|Parameter(Crores)||Ujjivan Small Finance Bank||AU Small Finance Bank|
|Net Interest Income (NII)||1106||1190|
|Provisions and Contingencies (Other than tax)||109||142|
|Net Profit /(Loss)||199.2||381|
|Book value per share||11.09||108.28|
Recommendation on Ujjivan Small Finance Bank (USFB) Limited IPO:
Registrar of Ujjivan Small Finance Bank (USFB) Limited IPO:
Bid Details of Ujjivan Small Finance Bank (USFB) Limited IPO as on
04-Dec-2019 22:30:01 IST
Total Number of Applications in Retail Category: ~1647003
Application-wise Subscription in Retail Category: 36.11X