Ujjivan Small Finance Bank IPO

Ujjivan Small Finance Bank IPO

Ujjivan Small Finance Bank Limited (USFB) offers small finance to underserved & unserved segments in India. The bank aims to work for the financial inclusion of the country. USFB Bank is promoted by Ujjivan Financial Services Limited (UFSL) which is an NBFC providing financial services to the economically active poor, who are not served by the Financial Institutions.

UFSL offers small size loan products to economically poor women, individual loans to Micro and Small Enterprises (MSEs). It follows the integrated lending approach where the company considers technology infrastructure and back-end support functioning before lending.

USFB has a wide presence across 24 states and union territories in India. As on 30 June 2019, it has 4.72 million customers, 474 Banking Outlets, 387 ATMs, two 24/7 phone banking units (in Bengaluru and Pune) and 50 additionally operated Asset Centres. Customers can use USFB mobile banking application in 5 languages.

Strength of Ujjivan Small Finance Bank

1) As on Q2 FY20 | Gross NPA = 0.9% | Net NPA = 0.3%

2) The loan book is steadily growing. Total Loan Book = Rs 12,864 Cr (Q2 FY20)

3) Already raised Rs 250 Cr in Pre-IPO placement.

4) Established and well-calculated risk management.

5) Digitally Advance Platform.

Ujjivan Small Finance Bank IPO Details

IPO Opens on:  02 December 2019

IPO Closes on:  04 December 2019

Price Band:  Rs 36-37 per share

Bid Lot: 400 shares and in multiples of 400 shares

Maximum Price: Rs 14,800

Fresh issue: Rs 750 Cr

Offer for Sale: Rs 0

IPO Size: Rs 750 Cr 

Retail & Employees Discount: Rs 0 per share

Ujjivan Small Finance Bank IPO Time Line

Finalisation of Allotment:  09 December 2019

Initiation of Refunds: 10 December 2019

Transfer of Shares to Demat Account: 11 December 2019

Listing At: NSE & BSE

Listing Date: 12 December 2019

Financial Performance of (in Crores) Ujjivan Small Finance Bank

FY19 FY18 FY17
Total Revenue 2,037.6 1,579.4 223.9
Total Expense 1,838.4 1,572.5 223.8
Comprehensive Income 199.2 6.9 0
Net margin (%) 9.8 0.4 0

Ujjivan Small Finance Bank IPO Valuations

Face Value = Rs 10

Earnings Per Share (EPS) = Rs 1.20

PE Ratio = 30 (Approx)

Return on Net Worth (RONW) = 9.49%

Net Asset Value = Rs 12.64/Share

Ujjivan Small Finance Bank IPO Subscription Details

Category Shares offered Subscription (no. of times, at 6 pm)
Day 1 Day 2 Day 3

QIB

0.23x 0.85x 110.72x
NII 0.43x 2.46x 473.00x
Retail 8.61x 23.85x 48.83x
Employee 0.72x 1.87x 4.12x
Total 1.62x 4.86x 165.64x

Grey Market Premium of Ujjivan Small Finance Bank IPO Day by Day

Grey market premium as on 04-12-2019 = Rs. 21-22/Share

Grey market premium as on 03-12-2019 = Rs. 21-22/Share

Grey market premium as on 02-12-2019 = Rs. 18-19/Share

Grey market premium as on 01-12-2019 = Rs. 17-18/Share

Grey market premium as on 30-11-2019 = Rs. 17-18/Share

Grey market premium as on 29-11-2019 = Rs. 17-18/Share

Grey market premium as on 28-11-2019 = Rs. 16-17/Share

Grey market premium as on 27-11-2019 = Rs. 14-15/Share

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