 "Ujjivan Financial raises Rs 300 cr in pre-IPO placement")
Microfinance lender Ujjivan Financial Services has raised Rs 300 crore from a clutch of investors, including HDFC Life and Sundaram MF, in a pre-IPO placement.
"Ujjivan Financial Services which filed its draft red herring prospectus on December 31, 2015, with market regulator Sebi seeking permission for its initial public offering has completed its pre-IPO placement of approximately Rs 300 crore," the company said in a statement.
Investors including HDFC Life, Sundaram MF, Shriram Life and Family offices and HNI's such as Desai Bros and others participated in the pre-IPO placement, it added.
The company intends to raise between Rs 1,000 and Rs 1,200 crore through its initial public offer (IPO).
The offer consists of a fresh issue of equity shares aggregating up to Rs 650 crore and an offer for sale of up to 2,49,68,332 equity shares.
The selling shareholders who would participate in the OFS include Elevar Equity Mauritius, International Finance Corporation, India Financial Inclusion Fund, Mauritius Unitus Corporation, Nederlandse Financierings - Maatschappij voor Ontwikkelingslanden N V, Sarva Capital LLC, WCP Holdings III and Women's World Banking Capital Partners, LP.
Since the pre-IPO placement is completed, the number of equity shares issued will be reduced from the fresh issue, subject to regulatory requirements, the statement said.
Kotak Mahindra Capital Company Limited, Axis Capital Limited, ICICI Securities Limited and IIFL Holdings Limited are the book running lead managers to the offer.
Till date, only one microfinance firm SKS Microfinances had tapped the capital markets. In 2010, SKS raised Rs 1,654 crore in its maiden public offering.
The proceeds of the issue would be utilised towards augmenting the company's capital base to meet future capital requirements.
In addition, the company "intends to reduce its foreign shareholding in accordance with the requirements of the SFB (Small Finance Bank) in-principle approval to set up a SFB."
Ujjivan Financial Services has also received an in-principle approval from Reserve Bank to set up small finance banks.
This is the second microfinance institution after Equitas Holding to approach the Securities and Exchange Board of India (Sebi) for an IPO this year.
The equity shares are proposed to be listed on BSE and NSE.
"Ujjivan Financial Services which filed its draft red herring prospectus on December 31, 2015, with market regulator Sebi seeking permission for its initial public offering has completed its pre-IPO placement of approximately Rs 300 crore," the company said in a statement.
Investors including HDFC Life, Sundaram MF, Shriram Life and Family offices and HNI's such as Desai Bros and others participated in the pre-IPO placement, it added.
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The funding values the company at around Rs 2,000 crore.
The company intends to raise between Rs 1,000 and Rs 1,200 crore through its initial public offer (IPO).
The offer consists of a fresh issue of equity shares aggregating up to Rs 650 crore and an offer for sale of up to 2,49,68,332 equity shares.
The selling shareholders who would participate in the OFS include Elevar Equity Mauritius, International Finance Corporation, India Financial Inclusion Fund, Mauritius Unitus Corporation, Nederlandse Financierings - Maatschappij voor Ontwikkelingslanden N V, Sarva Capital LLC, WCP Holdings III and Women's World Banking Capital Partners, LP.
Since the pre-IPO placement is completed, the number of equity shares issued will be reduced from the fresh issue, subject to regulatory requirements, the statement said.
Kotak Mahindra Capital Company Limited, Axis Capital Limited, ICICI Securities Limited and IIFL Holdings Limited are the book running lead managers to the offer.
Till date, only one microfinance firm SKS Microfinances had tapped the capital markets. In 2010, SKS raised Rs 1,654 crore in its maiden public offering.
The proceeds of the issue would be utilised towards augmenting the company's capital base to meet future capital requirements.
In addition, the company "intends to reduce its foreign shareholding in accordance with the requirements of the SFB (Small Finance Bank) in-principle approval to set up a SFB."
Ujjivan Financial Services has also received an in-principle approval from Reserve Bank to set up small finance banks.
This is the second microfinance institution after Equitas Holding to approach the Securities and Exchange Board of India (Sebi) for an IPO this year.
The equity shares are proposed to be listed on BSE and NSE.