Ujjivan Financial Services Mops Up Rs 265 Crore From Anchor Investors

Ujjivan Financial Services Mops Up Rs 265 Crore From Anchor Investors

Ujjivan Financial Services aims to launch small finance bank in the first quarter of 2017.

New Delhi: A day ahead of its IPO, microfinance player Ujjivan Financial Services raised nearly Rs 265 crore from anchor investors by selling shares at a price of Rs 210 apiece.

The anchor investors included Birla Sunlife Mutual Fund, ICICI Prudential Mutual Fund, Reliance Life Insurance, Reliance Mutual Fund, UTI Mutual Fund, Canara Robeco Mutual Fund, LIC Nomura Mutual Fund and HDFC Standard Life Insurance.

The price band for Ujjivan Financial Services' initial public offer has been fixed at Rs 207-210 and the shares to anchor investors have been allotted at the upper end.

In a filing to the exchanges, Ujjivan Financial Services said it has allotted over 1.26 crore shares to anchor investors raising nearly Rs 265 crore.

Ujjivan Financial Services, which has already received in-principle approval to set up a small finance bank, would be the second microfinance firm to go public this fiscal year. Another microfinance firm Equitas Holdings came out with its IPO this month.

The public issue of Ujjivan Financial Services, which is scheduled to close on May 2, comprises fresh issuance of shares worth Rs 358.16 crore and an offer for sale of up to 24,968,332 shares by the existing shareholders.

Three foreign investors - Mauritius Unitus Corporation (2.49 per cent), WCP Holdings III (3.06 per cent) and Women's World Banking Capital Partners (5.34 per cent) - would be completely exiting the company through the IPO.

The share sale would help Ujjivan bring down the foreign shareholding to around 45 per cent, from the current 77 per cent, which is required as per Reserve Bank of India guidelines for setting up a small finance bank.

Ujjivan Financial Services, which has already raised Rs 292 crore through a pre-IPO placement, is aiming to launch small finance bank in the first quarter of 2017.