(Last Updated On: November 28, 2019)

We have been discussing about different IPOs recently. And this time, we bring for you one more upcoming IPO: Ujjivan Small Finance Bank Limited IPO.

Before digging into the IPO details, let’s gather some useful and important information about the company and the services it offers.

Ujjivan Small Finance Bank Limited: Company Overview

Incorporated as Ujjivan Small Finance Bank Limited on July 4, 2016, the bank promoter Ujjivan Financial Services Ltd (USFL) received final approval by RBI to carry small finance bank(SFB) business in India on November 11, 2016. The bank commenced its business with effect from February 1, 2017.

Spread across 24 states and union territories as of March 31, 2019, Ujjivan Small Finance Bank Limited serves 4.72 million customers and operates 474 banking outlets that included 120 banking outlets in Unbanked Rural Centres. In Fiscal 2019 alone, 287 banking outlets were operationalized. As of June 30, 2019, the bank has 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.

Ujjivan Small Finance Bank Limited: Services Offered

The bank portfolio includes various asset and liability products and services.

Their asset products comprise of:

  • loans to our 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.

On the liability side, the bank offer savings accounts, current accounts and a variety of deposit accounts. In addition, they also provide non-credit offerings comprising ATM-cum-debit cards, Aadhaar enrolment services, distribute third party insurance products and point of sales (“POS”) terminals.

Ujjivan Small Finance Bank Limited: Key Strengths to Know

  1. Microfinance industry is expected to grow at CAGR of a 25% over next three fiscals.
  2. Focus on financially un-served and underserved segments.
  3. Customer centric organization with multiple delivery channel.
  4. Robust risk management framework.
  5. A Pan-India presence.
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Key Risks of Ujjivan Small Finance Bank Limited

  1. Small Finance Bank (SFB) model is relatively new to India.
  2. Ujjivan Small Finance Bank Limited has limited operating history as a SFB.
  3. Promoter stake will be reduced to 40%, 30% & 26% of the paid up equity share capital in 5th, 10th & 12th year of commencement respectively.
  4. Handling significant amount of cash, making the bank susceptible to operational risks including fraud, theft etc.

Competitive Strengths of Ujjivan Small Finance Bank Limited

  1. Ujjivan Small Finance Bank (USFB) has the lowest gross non-performing assets levels among all SFBs.
  2. USFB has the second highest provision coverage ratio amongst peers.
  3. USFB has the most diversified portfolio among SFBs.
  4. Fourth highest return on assets among all SFBs.

Ujjivan Small Finance Bank Ltd Team

Promoters

Ujjivan Financial Services Limited (USFL), a listed company whose equity shares are listed on the Stock Exchanges is the promoter of Ujjivan Small Finance Bank Limited.

Directors

As on date,  USFB board comprises of 12 Directors including one Executive Director, two Non-Executive Directors, eight Independent Directors and one Nominee Director of SIDBI.

S.No.NameDesignation
1
Sunil Vinayak PatelPart-Time Chairman and Independent
Director
2Samit Kumar GhoshManaging Director and Chief Executive
Officer
3Jayanta Kumar BasuNon-Executive Director
4Vandana ViswanathanNon-Executive Director
5Chitra Kartik AlaiNon-Executive Nominee Director
6Sachin BansalIndependent Director
7Luis MirandaIndependent Director
8Biswamohan MahapatraIndependent Director
9Prabal Kumar SenIndependent Director
10Nandlal Laxminarayan SardaIndependent Director
11Mona KachhwahaIndependent Director
12Mahadev LakshminarayananIndependent Director

Incoming Director

Nitin Chugh has been appointed as the Managing Director and Chief Executive Officer of the Bank in the AGM held on July 12, 2019 and shall assume office as Managing Director and Chief Executive Officer with effect from December 1, 2019.

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Ujjivan Small Finance Bank Ltd Financials 

Ujjivan Small Finance Bank Ltd: Summary of Assets and Liabilities (in Rs. Millions)

ParticularsReferenceAs on 31.03.2019As on 31.03.2018As on 31.03.2017
Capital and Liabilities
Capital1a16,400.3716,400.3716,400.37
Reserves and Surplus1b1,795.9468.980.35
Deposits1c73,794.4037,725.182,064.05
Borrowings1d41,660.9038,528.4562,914.04
Other Liabilities and Provisions1e3,770.542,005.752,980.24
Total Capital and Liabilities1g=1a+1b+1c+1d+1e137,422.1594,728.7384,359.05
Assets
Cash and Balances with Reserve Bank of India2a4,464.64
2,496.342609.29
Balances with Banks and Money at Call and Short Notice2b6,479.962,452.015,018.92
Investments2c15,266.2212,324.7914,466.77
Advances2d105,524.5573,362.1158,610.45
Fixed Assets2e2,844.501,983.451,397.69
Other Assets 2f2,842.282,110.032,255.93
Total Assets2g=2a+2b+2c+2d+2e+2f137,422.1594,728.7384,359.05
Contingent Liabilities3a308.53195.09283.36
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Ujjivan Small Finance Bank Ltd: Summary of Profit and Loss (in Rs. Millions)

ParticularsReferenceAs on 31.03.2019 As on 31.03.2018As on 31.03.2017
Income
Interest Earned1a18,316.1114,678.752,170.10
Other Income1b2,059.641,114.8068.64
Total Income(top-line)1c=1a+1b20,375.75
15,793.55
2,238.74
Expenses
Total Expenses2a18,383.5715,724.922,238.39
Profit/ Loss
Net Profit/ (Loss) for the period/year 3a1,992.1868.630.35
Profit/ (Loss) brought forward3b51.730.260.00
Total Profit/ Loss (bottom -line)3c=3a+3b2,043.9168.890.35
Earnings Per Share
Basic in Rs.(Face value of Rs.10 each)3a1.200.050.00
Diluted in Rs.(Face value of Rs.10 each)3b1.200.050.00

Ujjivan Small Finance Bank Ltd: Summary of Cash Flows (in Rs. Millions)

ParticularsReferenceAs on 31.03.2019 As on 31.03.2018As on 31.03.2017
Cash Flows
Net cash generated from operating activities1a4,777.1723,137.09-70,837.89
Net cash used in investing activities1b-1,478.60-1,005.94-1,611.40
Net cash used in financing activities1c2,867.23-24,385.5979,314.41
Net Increase/(Decrease) in Cash and Cash Equivalents 1d=1a+1b+1c6,165.80-2,254.446,865.12
Cash and Cash Equivalents at the beginning of the period/year1e4,610.686,865.12
Cash and Cash Equivalents at the end of the period/year
1f=1d+1e10,776.484,610.686,865.12

Ujjivan Small Finance Bank Ltd IPO Objective

  1. For augmentation of our Bank’s Tier – 1 capital base

Ujjivan Small Finance Bank Ltd. Pre-IPO round

Ujjivan SFB Pre-IPO round closed on 13-Nov-2019. It was led by IIFL groups, Avendus Capital, and ENAM Group. and raised about Rs 250 crore through the Pre-IPO round.  Ujjivan SFB offered 71.43 million shares at Rs 35 per equity shares.  India Infoline Finance Limited (IIFL) bought 50 percent of bank shares investing up to Rs 136 crore while Avendus and ENAM group invested Rs 32.5 crore and Rs 25 crore respectively. The fundraising resulted in dilution of 4.75% stake and values the bank at Rs 5,290 crore.

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Ujjivan Small Finance Bank IPO Details

Ujjivan Small Finance Bank IPO to open for subscription 2nd December 2019 and closes on 4th December 2019 with a price band of Rs.36-37 per share. It is aimed to raise around Rs.750 crore with this fresh IPO issue.

Here are some other useful details on the Ujjivan SFB IPO:

Issue OpenDec 2, 2019 - Dec 4, 2019
Issue TypeBook Built Issue IPO
Issue Size1,911,813,902 Eq Shares of Rs. 10
(aggregating up to Rs.750 Cr)
Face ValueRs.10 Per Equity Share
Issue PriceRs.36 to Rs.37 Per Equity Share
Market Lot400 Shares
Listing AtBSE, NSE

Ujjivan Small Finance Bank IPO Dates (Tentative)

Bid/Offer Opens OnDec 2, 2019
Bid/Offer Closes OnDec 4, 2019
Final AllotmentDec 9, 2019
Initiation of RefundsDec 10, 2019
Credit of Shares to Demat A/cDec 11, 2019
IPO Shares Listing DateDec 12, 2019

Ujjivan Small Finance Bank IPO Lot Size (Retail)

Lot ApplicationLot SizeCut Off Amount
Min 1 Lot400 SharesRs. 14,800
Max 13 Lots5200 SharesRs. 192,400
Ujjivan Small Finance Bank Limited IPO.https://fintrakk.com/wp-content/uploads/2019/11/Ujjivan-IPO-Review-1024x683.jpghttps://fintrakk.com/wp-content/uploads/2019/11/Ujjivan-IPO-Review-150x150.jpgJetin AnandIPO Reviewssmall finance bank IPO,Ujjivan IPO,Ujjivan Small Finance Bank,Ujjivan Small Finance Bank IPO,Ujjivan Small Finance Bank IPO ReviewWe have been discussing about different IPOs recently. And this time, we bring for you one more upcoming IPO: Ujjivan Small Finance Bank Limited IPO. Before digging into the IPO details, let's gather some useful and important information about the company and the services it offers. Ujjivan Small Finance Bank Limited:...Personal Finance Blog