At Rs 231.60 on BSE
Shares of Ujjivan Financial Services settled at Rs 231.60 on BSE, a premium of 10.29% over the initial public offer (IPO) price of Rs 210.
The stock debuted at Rs 227, a premium of 8.10% to the IPO price. The stock hit a high of Rs 244 and low of Rs 217.05 in intraday trade. On BSE, 96.83 lakh shares were traded on the counter.
The Reserve Bank of India (RBI) yesterday, 9 May 2016, notified that in view of listing of shares of the company, Ujjivan Financial Services on stock exchange, the aggregate investment ceiling for Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) investment under Portfolio Investment Scheme shall remain at 49%. RBI has further advised that the aggregate limit for NRI investment shall not exceed 10%. The total foreign investment from all sources i.e. FIIs/RFPI/Non Residential Indians (NRIs)/ American Depository Receipts (ADRs)/Global Depository Receipts (GDRs)/Foreign Direct Investment (FDI)/Person of Indian Origin (PIO) in the company shall not exceed 49%, RBI said.
The IPO of microfinance firm Ujjivan Financial Services ended on 2 May 2016. The IPO was subscribed 40.68 times and it received bids for a total of 120.68 crore shares, as per data from the National Stock Exchange (NSE) website. The qualified institutional buyers (QIBs) category was subscribed 33.84 times. The non-institutional investors category was subscribed 135.45 times. The retail individual investors (RIIs) category was subscribed 4.02 times.
The IPO comprised of fresh issue of shares up to Rs 358.16 crore and offer for sale of up to 2.49 crore shares by existing shareholders. The IPO opened for bidding on 28 April 2016.
Ujjivan Financial Services raised Rs 264.74 crore by selling 1.26 crore shares to anchor investors ahead of the opening of the company's IPO. The shares were allotted to the anchor investors at Rs 210 per share, the top end of the Rs 207 to Rs 210 per share price band for the IPO.
Among the selling shareholders, International Finance Corporation sold 30.60 lakh shares, Elevar Equity Mauritius sold 34.95 lakh shares, India Financial Inclusion Fund sold 17.54 lakh shares, Mauritius Unitus Corporation sold 25.23 lakh shares, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. sold 26.98 lakh shares, Sarva Capital LLC sold 29.35 lakh shares, WCP Holdings III sold 30.93 lakh shares and Women's World Banking Capital Partners, L.P. sold 54.06 lakh shares via the IPO.
Ujjivan Financial Services is transforming itself into a small finance bank (SFB). It is one amongst the 10 companies in India to receive in-principle approval from the RBI to set up a small finance bank. As per the regulatory requirements, the foreign shareholding in the company is to be brought down before it converts itself into a small finance bank. This is one of the reasons why existing foreign investors in the company are pruning their stake in Ujjivan Financial Services through the IPO.
The company proposes to utilise the proceeds from the fresh issue of shares for augmenting its capital base to meet future capital requirements. Ujjivan Financial Services is one of the leading microfinance companies in India. The company's business is primarily based on the joint liability group-lending model for providing collateral free, small ticket-size loans to economically active women. The company also gives individual loans to Micro & Small Enterprises. The company's operations are spread across 24 states and union territories and 209 districts across India.
The company reported net profit of Rs 122.30 crore on revenue from operations of Rs 713.20 crore for 9 months ended 31 December 2015. Net profit stood at Rs 75.78 crore on revenue from operations of Rs 599.31 crore for the year ended 31 March 2015.
The ratio of gross non-performing assets as a percentage of net assets under management (AUM) stood at 0.15% as on 31 December 2015. The net AUM is arrived at after deducting assets securitized/assigned from gross AUM. The ratio of net non-performing assets as a percentage of net AUM stood at 0.04% as on 31 December 2015.
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