About the Company:
Ujjivan Small Finance Bank is a mass market focused SFB in India, catering to unserved and underserved segments in the country.
Among the leading SFBs in India, Ujjivan Small Finance Bank Bank had the most diversified portfolio, spread across 24 states and union territories as of March 31, 2019
As of June 30, 2019, Company had served 4.72 million customers and operated from 474 Banking Outlets that included 120 Banking Outlets in Unbanked Rural Centres and additionally operated 50 Asset Centres.
As of June 30, 2019, Company had a network of 387 ATMs, two 24/7 phone banking units based in Bengaluru and Pune that service customers in 11 languages, and a mobile banking application that is accessible in five languages as well as internet banking facility for individual and corporate customers.
Company’s Portfolio of Products and Services includes:
- Loans to micro banking customers that include group loans and individual loans.
- Agriculture and allied loans.
- MSE loans.
- Affordable housing loans.
- Financial institutions group loans.
- Personal loans.
- Vehicle loans.
Positives for the Company:
Serving Unserved and Underserved Segments.
Company’s SFB operations are focused on serving the financially unserved and underserved segments in India. As of June 30, 2019, company operated 181 Banking Outlets located in 78 districts classified by the RBI as under-banked districts as per the Census 2011.
Company’s focus on the financially unserved and underserved segments enables them to comply with RBI’s requirements that: (i) small finance banks locate at least 25% of their banking outlets in URCs, and (ii) at least 75% of adjusted net bank credit (“ANBC”) be made to “priority sectors”.
Pan-India Presence.
As of March 31, 2019, company was among the leading SFBs (Small finance Banks) in terms of branch count and geographical spread across India. As of June 30, 2019 company was present in 24 states and union territories encompassing 221 districts in India.
Company’s operations are well-diversified and in Fiscal 2019, no single state constituted more than 18.00% of the overall loan portfolio. As a result of geographic spread, company has been able to reduce the concentration risk and diversify the loan portfolio.
Management Team:
- Mr. Samit Kumar Ghosh (Designation: Managing Director and Chief Executive Officer)
- Mr. Jayanta Kumar Basu (Designation: Non-Executive Director)
Objectives of the Issue:
- Bank proposes to utilize the Net Proceeds from the Issue towards augmenting our Bank’s Tier – 1 capital base to meet our Bank’s future capital requirements.
- Further, the proceeds from the Issue will also be used towards meeting the expenses in relation to the Issue.
Financials of the Company:
| (in Crores) | FY 17 | FY 18 | FY 19 | 30th Sept 19 |
|---|---|---|---|---|
| Revenue | 223.87 | 1579.3 | 2037.6 | 1434.8 |
| Net Profit | 0.035 | 6.9 | 204.4 | 305.4 |
Also Read: Complete List of Upcoming IPOs in 2020
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Ujjivan Small Finance Bank Ltd | 10 | 1.20 | 30.83 | 9.49% | 12.64 |
| AU Small Finance Bank Ltd | 10 | 13.16 | 53.04 | 12.07% | 108.19 |
| Equitas Holdings Limited | 10 | 5.18 | 21.19 | 7.24% | 71.57 |
| Bandhan Bank Limited | 10 | 16.36 | 30.42 | 17.42% | 93.89 |
| CreditAccess Grameen Ltd | 10 | 23.37 | 21.91 | 13.18% | 164.75 |
Also Read : What is Small Finance Bank?
Should You Invest in Ujjivan Small Finance Bank IPO?
- The Short answer to the Big Question would be Yes. If you want to Know more about various aspects of Small Finance Banks in India also Read “ What is Small Finance Bank? “
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 2nd December 2019 |
| Issue Closes on:. | 4th December 2019 |
| Issue Price | Rs.36 – 37 |
| Face Value | Rs.10 |
| Minimum Lot | 400 Shares |
| Minimum Investment | Rs.14800 |
| Offer Breakup | QIB 75% | HNI 15% | Retail 10% |
| Issue Constitutes | 13.28% |
| Issue Size | Rs.750 cr ($105 million) |
| Market Cap | Rs. 6394 cr ($896 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 20,27,02,702 |
| Equity Shares Prior to the Issue | 152,55,20,467 |
| Equity Shares after the Issue | 172,82,23,169 |
Important Dates:
| Finalization of Basis of Allotment | On or Before 9th December 2019 |
| Initiation of Refunds | On or Before 10th December 2019 |
| Credit of Equity Shares: | On or Before 11th December 2019 |
| Listing Date: | On or Before 12th December 2019 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 5,62,50,000 | 0.23 | 0.85 | 113.8 |
| NII | 2,81,25,000 | 0.43 | 2.46 | 486.1 |
| Retail | 1,87,50,000 | 8.61 | 23.9 | 50.14 |
| Reservation Portion Shareholder | 2,08,33,333 | 0.72 | 1.87 | 4.23 |
| TOTAL | 12,39,58,333 | 1.62 | 4.86 | 170.23 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.20 | 30.83 | 9.49% | 12.64 |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
| Company Contact Info: |
|---|
| Ujjivan Small Finance Bank Limited Plot No. 2364/ 8 Khampur Raya Village, Shadi Kampur Main Patel Road New Delhi 110 008 India E-mail: ipo@ujjivan.com Website: www.ujjivansfb.in |
| IPO Registrar Info: |
|---|
| Karvy Fintech Private Limited Karvy Selenium, Tower B, Plot No. 31-32 Gachibowli Financial District Nanakramguda, Hyderabad 500 032 Tel: +91 40 6716 2222 Investor grievance e-mail: USFB.ipo@karvy.com Website: www.karisma.karvy.com |
