The IPO of Ujjivan Small finance Bank will open for Subscription on December 2, 2019 and will close on December 4, 2019.
This would be the 12th IPO to be launched in financial year 2019-20.
Profile
Ujjivan Financial Services Ltd (UFSL) received RBI’s approval to establish a small finance Bank on October 7, 2019 and incorporated Ujjivan Small finance bank as its wholly owned subsidiary in 2015 which started its operations on February 1, 2017.
Price Band
The price band of IPO is kept at Rs. 36-37 per equity share. There is a reservation of around 10% i.e. Rs. 75 Crore for Ujjivan Financial Services with an discount of Rs. 2 per share.
Minimum bid lot is of 400 Shares.
Issue Size
The issue size of IPO is Rs. 750 Crore.
Company has already raised Rs. 250 Crore through Pre IPO placement of 7.14 Cr equity shares.
Objects of the issue
The bank will utilise the net proceeds from the issue towards Tier-I capital base requirements.
Management
The bank has Mr. Samit Kumar Ghosh as its Managing Director (M.D.) and Chief Executive Officer (CEO).
Mr. Nitin Chugh is proposed MD and CEO of Bank w.e.f today i.e. December 1, 2019.
CA Upma Goel is banks CFO since February 1, 2017.
Strengths
- Deep understanding of mass market on unserved and underserved segments.
- Customer centric organisation with multiple delivery channel
- PAN India presence with services in 24 states and UT covering 232 distt. as on September 2019.
- Technology driven operating model with advanced digital platform.
- Robust risk management framework to identify and monitor Credit marlet, liquidity and risks.
- Professional and experienced management in terms of lending and bank operations.
Bank’s Strategy
- Product Diversification for multiple customer relationship
- Focus on Technology and data analytics for operational growth.
- Increase Retail customer base.
- Expand distribution network to increase customer penetration.
- Developing responsible behavior and pattern for unserved and underserved segments.
- Diversify revenue streams.
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Financial Information
| Fig ‘Rs. In Cr.’ | ||||
| 30-Jun-19 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | |
| Interest Income | 605.37 | 1,831.61 | 1,467.88 | 217.01 |
| Interest Expenses | 252.92 | 725.20 | 606.86 | 109.36 |
| Net Interest Income | 352.45 | 1,106.41 | 861.01 | 107.65 |
| Total Income | 705.50 | 2,037.58 | 1,579.36 | 223.87 |
| Expenses | 611.02 | 1,838.36 | 1,572.49 | 223.84 |
| PAT | 94.48 | 199.22 | 6.86 | 0.03 |
Assets Products
Bank offers various services like Saving, Current and Deposit A/c’s, Aadhaar enrolment services, Third party insurance products.
As per RBI’s requirement :
- Small Finance Bank must open 25% of their banking outlets in unbanked rural centres (URC’s).
- Atleast 75% of banks credit be made to priority sector including Micro Loans.
As on September 2019, 25.54% of UFSB outlets were in URC and 77% of total credits were made to priority sector.
They also offers Vehicle loans, Personal loans, MSE Loans, Affordable Housing Loans, Micro Loans, Agriculture loans, Individual Loans.