IPO Street: Ujjivan to raise Rs 900 cr; Impressive debut by Equitas Holdings

April 22, 2016 12:00 am | Updated 05:50 am IST - MUMBAI:

Micro-lender Ujjivan Financial will hit the capital markets to raise about Rs 880 crore which constitutes a fresh issue of shares for Rs. 358.16 crore and the rest from an offer for sale of over 2.49 crore equity shares to existing shareholders.

Offer details

The initial public offer will open on 28 April in a price band of Rs 207 to Rs 210.

The Bengaluru-based lender had raised Rs 292 crore from a pre-IPO placement in February.

The issue will help the lender to reduce its foreign shareholding to 44 per cent from 77 per cent now, said Mr. Samit Ghosh, managing director and chief executive officer, of Ujjivan, which has received a licence to start a small finance bank. According to RBI norms, foreign shareholding in such entities should be less than 49 per cent.

“We are planning to start operations in the first quarter of 2017. Initially, about 40 per cent of our existing 470 branches will be converted to bank branches,” Mr Ghosh said.

Equitas Holdings, another lender which received a licence to operate as a small finance bank, made an impressive debut on the bourses on Thursday.

Market Cap

On the National Stock Exchange (NSE), the shares opened at Rs.145.10 and rose further to touch an intra-day high of Rs.147, before closing at Rs.135.60, 23.27 per cent higher than the issue price of Rs.110.

As per the closing price, the market capitalisation of the small finance bank is pegged at Rs.4,535.95 crore. Incidentally, the market capitalisation of SKS Microfinance is Rs.7,343.94 crore.

The public issue of Equitas comprised a fresh issue of around 6.6 crore shares and an offer for sale by existing shareholders to the tune of 13.2 crore shares.

The price band for the offer was fixed between Rs.109 and Rs.110 per share.

Forty per cent of Ujjivan’s 470 branches will be converted to bank branches

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