Ujjivan Financial IPO opens on April 28, 2016 with Price Band of Rs. 207 – Rs. 210



Ujjivan Financial IPO opens on April 28, 2016
with Price Band of  Rs. 207 – Rs.  210


Price Band: Rs. 207 to Rs.  210 per Equity Share of Face Value of Rs.  10 each

The Floor Price is 20.7 times the Face Value and the Cap Price is 21 times the Face Value

Bids can be made for a minimum of 70 Equity Shares and in multiples of 70 Equity Shares thereafter

·        Fresh Issue of Equity Shares aggregating up to Rs. 3,581.61 million**

·        Offer for Sale of up to 24,968,332 Equity Shares by the Selling Shareholders

·        Bid/Offer Opening Date – April 28, 2016 and Bid/Offer Closing Date – May 02, 2016

*APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA): 

Investors have to apply through the ASBA process. ASBA has to be availed by all the investors except anchor investors. For details on the ASBA process, please refer to the details given in the ASBA Form and Abridged Prospectus and also please refer to “Offer Procedure” on page 239 of the RHP. ASBA Forms can also be downloaded from the websites of BSE and NSE. ASBA Forms can be obtained from the list of banks that is available on the website of SEBI at www.sebi.gov.in. ASBA Form can be obtained from Syndicate, SCSBs, Registered Brokers, RTAs and CDPs, the list of which is available on the website of SEBI at http://www.sebi.gov.in/sebiweb/home/5/33/0/0/Recognised-Intermediaries.

** THE COMPANY HAS, IN CONSULTATION WITH THE BRLMS, UNDERTAKEN A PRE-IPO PLACEMENT OF 14,236,057 EQUITY SHARES FOR CASH CONSIDERATION AGGREGATING TO Rs. 2,918.39 MILLION. THE SIZE OF THE FRESH ISSUE AS DISCLOSED IN THE DRAFT RED HERRING PROSPECTUS DATED DECEMBER 31, 2015, BEING Rs. 6,500 MILLION, HAS BEEN REDUCED ACCORDINGLY.


Ujjivan Financial Services Ltd. (“UFS” or the “Company”) is a Non Banking Financial Company – Micro Finance Institution (“NBFC-MFI”) which started operations in 2005 as a Non Banking Financial Company (“NBFC”). As of December 31, 2015, UFS has served over 2.77 million active customers across 24 states and union territories through a network of 470 branches and 7,862 employees. The IPO opens on April 28, 2016 and closes on May 02, 2016, with a price band of ` 207 – ` 210 per Equity Share of face value of ` 10 each. The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/Offer Opening Date, i.e. April 27, 2016.

The IPO consists of a fresh issue of Equity Shares aggregating up to ` 3,581.61 million by the Company and an offer for sale of up to 24,968,332 Equity Shares by Elevar, FMO, IFC, IFIF, MUC, Sarva Capital, WCP and WWB. The Company, in consultation with the BRLMs, has completed a Pre-IPO Placement of 14,236,057 Equity Shares for cash consideration aggregating to ` 2,918.39 million. The size of the Fresh Issue as disclosed in the Draft Red Herring Prospectus dated December 31, 2015, being ` 6,500 million, has been reduced accordingly.

The Offer is being made through the Book Building Process, wherein 50% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIB Portion”). The Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”), at the Anchor Investor Allocation Price. 

At least one-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above Anchor Investor Allocation Price. 

In the event of under-subscription, or non-allocation of the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion. 5% of the Net QIB Portion  shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price.

Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders (except Anchor Investors) shall participate in the Offer mandatorily through the Applications Supported by Blocked Amount (“ASBA”) process.

Any Bidder who, either by himself directly or indirectly or along with the relatives, or associated enterprises, or persons acting in concert (as described under section 12B of the Banking Regulation Act) (“Other Persons”) associated with it, Bids for such number of Equity Shares that (along with the existing aggregate shareholding in the Company of such Bidder and the Other Persons associated with such Bidder), results in such Bidder, together with the Other Persons associated with such Bidder, holding 5% or / more of the post-Offer paid-up share capital of the Company, shall obtain a valid and subsisting approval of the RBI to be eligible to acquire and hold, after considering its existing shareholding if any, in the Company, together with the
existing shareholding in the Company, if any, of the Other Persons associated with such Bidder, 5% or more of the post-Offer paid-up share capital of our Company, either individually or
on an aggregate basis with the Other Persons associated with such Bidder, as the case may be, subject to the subscription level in the Offer.

The Company proposes to utilise the Net Proceeds of the Fresh Issue for augmenting its capital base.

Kotak Mahindra Capital Company Limited, Axis Capital Limited, ICICI Securities Limited and IIFL Holdings Limited are the BRLMs to the Offer, while Karvy Computershare Private Limited is the Registrar to the Offer.

The Equity Shares of the Company are proposed to be listed on the BSE and the NSE.

Disclaimer:

UJJIVAN FINANCIAL SERVICES LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (“Equity Shares”) and has filed the Red Herring Prospectus dated April 13, 2016 with the Registrar of Companies, Bangalore, which shall be read along with the Corrigendum dated April 19, 2016 (together the Red Herring Prospectus and the Corrigendum are referred to as the “RHP”). The RHP shall be available on the website of the SEBI at www.sebi.gov.in, the websites of the Book Running Lead Managers at www.investmentbank.kotak.com, www.axiscapital.co.in, www.icicisecurities.com and www.iiflcap.com and the websites of the Stock Exchanges at

Any potential investor should note that investment in Equity Shares involves a high degree of risk, for details, potential investors should refer to the section titled “Risk Factors” in the Red Herring Prospectus dated April 13, 2016, filed with the Registrar of Companies, Bangalore. Investors should not refer to the DRHP filed with SEBI for making any investment decision.

This announcement has been prepared for publication in India and may not be released in the United States. The announcement is not an offer to sell or a solicitation of any offer to buy securities of our Company in the United States. 

The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India.

It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the RHP has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to page 221 of the RHP for the full text of the Disclaimer clause of the BSE.

It is also to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 221 of the RHP for the full text of the Disclaimer clause of the NSE.

The Company is having a valid certificate of registration dated March 4, 2016, issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of our Company or for the correctness of any of the statements or representation made or opinions expressed by our Company and for discharge of liabilities by our Company.

About – Ujjivan Financial Services Limited:

Ujjivan Financial Services Limited started its operations as an NBFC in 2005 with the mission of providing a full range of financial services to the economically active poor who are not adequately served by financial institutions

Its business is primarily based on the joint liability group lending model for providing collateral free, small ticket-size loans to economically active women and the Company also offers individual loans for housing related needs and to Micro and Small Enterprises (“MSEs”). UFS is one amongst ten companies to have received in-principle approval from the RBI for setting up a Small Finance Bank (SFB). As of December 31, 2015, the Company had operations spread across 24 states and union territories, and 209 districts across India, making it a Micro Finance Institution (“MFI”) with wide geographical reach. 

It served over 2.77 million active customers through 470 branches and 7,862 employees and its Gross AUM stood at `45.89 billion with a portfolio quality indicator of Gross NPA as a percentage of Net Assets under Management of 0.15% as of December 31, 2015. For the past five consecutive years, the Company has been consistently ranked among the top 25 companies to work for in India by the Great Places to Work® Institute in partnership with the Economic Times.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the RHP.

For further details please contact:

Concept Public Relations

Christopher Charles | 98424 75706 | charles@conceptpr.com

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