Ujjivan Financial Services Ltd. a Non Banking Financial Company, is offering a fresh issue of 24,968,332 Equity Shares by the Selling Shareholders aggregating up to Rs 3,581.61 million.
Speaking at a press conference, Samit Ghosh Managing director & CEO said “I founded Ujjivan in 20015 for the ‘Upliftment’ of the unserved or underserved people by the mainstream financial services. We have been growing at about 50% CAGR because of our service and our business philosophy.
The results speak for themselves, today we are number 1 in microfinance, we are honoured with many awards like ‘Best place to work’, consistently for the past 5 years despite difficult work environment – we are consistently among the top 25 companies to work for in India however the best award comes from our customers. Most of our customers have been brought in by existing customers. We have served around 3 million active customers across India with 470 branches and around 8000 employees.
We consider our customers the most significant stakeholders at the core of our operations. In addition to constantly assessing our customers’ requirements and feedback for the introduction of new products, we have also set up a dedicated service quality department to focus on customer retention, customer protection and grievance redressal. As a result of our customer centric approach and welfare initiatives, our customer retention rates have improved from 73% in Financial Year 2010 to 89% as of September 30, 2015.”
The IPO consists of a fresh issue of Equity Shares aggregating up to Rs 3,581.61 million by the Company and an offer for sale of up to 24,968,332 Equity Shares on BSE and NSE, by Elevar, FMO, IFC, IFIF, MUC, Sarva Capital, WCP and WWB.
The Company, in consultation with the BRLMs, has completed a Pre-IPO Placement of 14,236,057 Equity Shares for cash consideration aggregating to Rs 2,918.39 million.
The size of the Fresh Issue as disclosed in the Draft Red Herring Prospectus dated December 31, 2015, being Rs 6,500 million, has been reduced accordingly.
Kotak Mahindra Capital Company Limited, Axis Capital Limited, ICICI Securities Limited and IIFL Holdings Limited are the BRLMs to the Offer, while Karvy Computershare Private Limited is the Registrar to the Offer.
The Company proposes to utilise the Net Proceeds of the Fresh Issue for augmenting its capital base.
- Price Band: Rs 207 to Rs 210 per Equity Share of Face Value of Rs 10 each
- The Floor Price is 20.7 times the Face Value and the Cap Price is 21 times the Face Value
- Bids can be made for a minimum of 70 Equity Shares and in multiples of 70 Equity Shares thereafter
- Bid/Offer Opening Date – April 28, 2016 and Bid/Offer Closing Date – May 02, 2016