Let’s have a detailed review of the company and analytics of the Ujjivan Small Finance Bank IPO release date, USFB IPO offer price, subscription, Ujjivan IPO allotment, grey market price and other details like the company’s background, UFSL financial positions, its promoters, and other related things. 

Market Lot400  Shares
Min. Order Quantity400  Shares
Listing AtBSE, NSE
Price BandRs. 36 – 37
Listing DateDec 12, 2019
Issue Size (shares)208,333,333

Ujjivan Small Finance Bank IPO Review & Ratings

IPO Ratings & Review
Industry Sentiments7.5/10
Industry Ranking7.1/10
Company Background7.3/10
Company Reputation7.2/10
Competitive Edge7.7/10
Financial Statements7.1/10
Popularity Index7.4/10
Promoters Reputation7.7/10
Retail Appetite7.1/10
Top Brokers Review7.9/10
Overall Ratings7.4/10
Star Ratings★★★★☆

Summary of Ujjivan Bank IPO

Ujjivan Small Finance Bank IPO

They are a mass market focused SFB in India, catering to unserved and underserved segments and committed to building financial inclusion in the country. UFSL’s erstwhile business was primarily based on the joint liability group-lending model for providing collateral free, small ticket-size loans to economically active poor women.

Ujjivan Small Finance also offers individual loans to Micro and Small Enterprises (“MSEs”) and adopted an integrated approach to lending, which combined a customer touchpoint similar to microfinance, with the technology infrastructure and related back-end support functions similar to that of a retail bank.

The Promoters of this company is Ujjivan Financial Services Limited. The lead manager to the issue are Kotak Mahindra Capital Company Limited, IIFL Securities Limited, JM Financial Limited and the Registrar to this issue is Karvy Fintech Private Limited.

From FY 2016-17 to FY 2018-19, as per the Restated Financial Statements

Also, Net Interest Margins in Fiscal 2018 and 2019 were 10.31% and 10.93%, respectively, and was 10.51% in the three months ended June 30, 2019. Total deposits have increased from Rs. 2,064.05 million as of March 31, 2017 to Rs. 73,794.40 million as of March 31, 2019 and were Rs. 79,567.64 million as of June 30, 2019.

Of their total deposits,  share of retail deposits has increased from 3.15% as of March 31, 2017 to 37.07% as of March 31, 2019 and was 43.09% in the three months ended June 30, 2019. Moreover, our CASA to total deposits ratio has improved from 1.57% as of March 31, 2017 to 10.63% as of March 31, 2019 and was 10.39% as of June 30, 2019.

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    Ujjivan Bank IPO Date

    The opening and the closing date of Ujjivan Small Finance Bank IPO is Dec 2 – Dec 4, 2019.

    Ujjivan Bank IPO Subscription

    Total Subscription
    1st Day – Dec 20.23x0.43x8.61x0.72x1.62x
    2nd Day – Dec 30.85x2.46x23.85x1.87x4.86x
    3rd Day – Dec 4110.72x473.00x47.72x4.01x165.45x
    Shares Offered 56,250,00028,125,00018,750,00020,833,333123,958,333

    The shares subscribed by the public will be updated herein.

    Ujjivan Small Finance Bank IPO Allotment Status

    Here, you can find the Allotment Status of this IPO. Those who had applied for shares in this IPO can check their allotment status through application number, DPID/ Client ID or PAN card number. Allotment of shares for Ujjivan IPO is in progress.

    Ujjivan IPO Listing Date / Other Events

    Find the dates below for basis of allotment, refund, listing and more:

    Basis of Allotment FinalizationDec 9, 2019
    Refunds InitiationDec 10, 2019
    Credit of Shares to Demat AccountDec 11, 2019
    Share Listing DateDec 12, 2019
    Submission and Revision in Bids10.00 a.m. to 5.00 p.m.
    Submission and Revision in Bids10.00 a.m. to 3.00 p.m.

    Ujjivan Small Finance Bank IPO Price Band

    The face value of each share is Rs 10, but the price band of the IPO is Rs 36 – Rs 37.

    Ujjivan Bank IPO Size & Offering

    Issue Size: 208,333,333 Equity Shares of Rs. 10 (Face Value), aggregating up to Rs. 750 Crores.

    Price Discount: Rs. 2/- per equity share for Ujjivan Financial Services Limited (“UFSL”) shareholders bidding in the Shareholder Reservation Portion

    Ujjivan Financial Services Limited – Company Overview

    Ujjivan Financial Services Limited as a wholly-owned subsidiary. UFSL, subsequent to obtaining RBI Final Approval on November 11, 2016 to establish and carry on business as an SFB, transferred its business undertaking comprising of its lending and financing business to our Bank, which commenced its operations from February 1, 2017.

    They were included in the second schedule to the Reserve Bank of India Act, 1934 as a scheduled bank on July 3, 2017. In the short span of time that company has been operational as an SFB, they are among the leading SFBs in India in terms of deposits, advances, branch count and geographical spread, as of March 31, 2019.

    Among the leading SFBs in India, Company’s Bank had the most diversified portfolio, spread across 24 states and union territories as of March 31, 2019. Company intend to develop and offer a comprehensive suite of asset and liability products and services that will help attract new customers and deepen the relationship with existing customer base.Their focus customers are primarily young middle class customers across India.

    UFSL Products & Services

    Their portfolio of products and services includes various asset and liability products and services. The asset products comprise: (i) loans to our micro banking customers that include group loans and individual loans, (ii) agriculture and allied loans, (iii) MSE loans, (iv) affordable housing loans, (v) financial institutions group loans, (vi) personal loans, and (vii) vehicle loans. On the liability side, we offer savings accounts, current accounts and a variety of deposit accounts. In addition, we also provide non-credit offerings comprising ATM-cum-debit cards, Aadhaar enrolment services, distribute third party insurance products and point of sales (“POS”) terminals.

    Business strategies of Ujjivan Financial Services Limited

    • Diversify product offerings to enable multiple customer relationships
    • Continue to focus on technology and data analytics to grow operations
    • Strengthen liability franchise and focus on increasing our retail base
    • Expand our distribution network to increase customer penetration
    • Focus on developing responsible banking behavior for unserved and underserved segments
    • Diversify revenue streams

    Ujjivan Financial Services Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary of UFSL IPO

    On the basis of Standalone statement:-

    Amount (in INR & Millions)  
    September 30, 2019March 31, 2019March 31, 2018
    July 4, 2016 to March 31, 2017
    Total Assets1,61,078.961,37,422.1594,728.7384,359.05
    Total Revenue14,348.5720,375.7515,793.552,238.74
    Total Expense12,477.4718,383.5715,724.922,238.39
    Profit After Tax3,054.732,043.9168.890.35

    Earnings per Equity Share (in Millions)

    September 30, 2019March 31, 2019March 31, 2018
    July 4, 2016 to March 31, 2017
    Basic & Diluted1.

    From the above statements, one could find that Ujjivan Small Finance Bank may perform well.

    Ujjivan Small Finance Bank IPO – Promoters

    The Promoter of this company is:

    • Ujjivan Financial Services Limited

    Ujjivan Bank IPO – Promoter Holding

    UFSL is the sole Promoter of our Bank. As of the date of this Red Herring Prospectus, the Promoter holds an aggregate of 1,440,036,800 Equity Shares (which includes six Equity Shares held by nominees on behalf of UFSL), aggregating to 94.40% of the pre-Issue issued, subscribed and paid-up Equity Share capital of the Bank, and 200,000,000 Preference Shares aggregating to 100% of the issued and paid-up Preference Share capital of the Bank.

    • Pre Issue Share Holding is 94.40%

    List of Related Parties (Key Managerial Personnel)

    • Rajat Singh, Business Head – Micro Banking and Rural Banking
    • Alok Chawla, Head – Audit
    • Jaya Janardanan, Chief Operating Officer
    • Chanchal Kumar
    • Sanjeev Barnwal
    • Sanjay Kao
    • Upma Goel
    • Sanjay Kao
    • Jaya Janardanan
    • Alok Chawla
    • Chanchal Kumar

    Interest in Intellectual Rights of the Company

    As on the date of filing of the Draft Red Herring Prospectus, the Company does not own any intellectual property rights.

    UFSL IPO Offer Details or Issue Details

    Particulars No. Of Equity Shares
    Issue of Equity SharesUp to [●] Equity Shares, aggregating up to Rs. 7,500 million
     Of which:
     Reserved for Market Makers Upto [●] Equity Shares of Rs. 10 each for cash at a
    price of M [●] per share aggregating Rs.7,50 Million
     Net Issue to the Public Up to [●] Equity Shares, aggregating up to Rs. 6,750 million
     Of which:
     Retail Investors Portion Not more than [●] Equity Shares
     Non-Retail Investors PortionNot more than [●] Equity Shares
     Equity Shares outstanding prior to the Issue1,525,520,467 Equity Shares
     Equity Shares outstanding after the Issue[●] Equity Shares

    Ujjivan Small Finance Bank IPO Issue Object

    Bank proposes to utilize the Net Proceeds from the Issue towards augmenting our Bank’s Tier – 1 capital base to meet our Bank’s future capital requirements. Further, the proceeds from the Issue will also be used towards meeting the expenses in relation to the Issue.

    The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges.

    Ujjivan Small Finance Bank IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors. Bank allotted 14,055,097 Equity Shares under the USFB ESPS 2019 to certain eligible employees of our Bank and UFSL on November 11, 2019.

    Qualitative factors are:

    • Deep understanding of mass market serving unserved and underserved segments
    • Customer centric organization with multiple delivery channels
    • Pan-India presence
    • Technology driven operating model with advanced digital platform
    • Robust risk management framework
    • Strong track record of financial performance
    • Professional management, experienced leadership with focus on employee welfare

    The relevant quantitative factors are:

    On the basis of standalone statement:-

    Basic & Diluted EPSRONW NAV (Rs.)
    31 Mar-191.209.49%12.64
    31 Mar-180.050.42%
    31 Mar -170.000.00%
    • Price to Earnings (P/E) ratio in relation to Issue Price of Rs. [ ]:
    ParticularsP/E ratio

    UFSL IPO – Competitive Peers

    Below are the listed entities which are focused exclusively on the segment in which they operate.

    Ujjivan bank IPO peers

    Ujjivan Small Finance Bank IPO Lead Managers

    Lead Managers
    Kotak Mahindra Capital Company Limited

    IIFL Securities Limited

    JM Financial Limited

    Ujjivan Small Finance Bank IPO Registrar to offer

    Registrar to the Offer
    Karvy Fintech Private Limited*
    Karvy Selenium, Tower B, Plot No. 31-32
    Gachibowli Financial District
    Hyderabad 500 032
    Tel: +91 40 6716 2222
    E-mail: einward.ris@karvy.com
    Investor grievance e-mail: USFB.ipo@karvy.com
    Website: www.karisma.karvy.com
    Contact Person: Murali Krishna
    SEBI Registration No.: INR000000221

    Ujjivan Bank IPO Other Details:

    • Statutory Auditor – MSKA & Associates, Chartered Accountants,
    • Peer Review Auditor – MSKA & Associates, Chartered Accountants, 
    • Bankers to the Issue – HDFC Bank Limited

    Ujjivan Small Finance Bank IPO Grey Market Premium

    The Ujjivan Small Finance Bank IPO Grey Market Premium price is Rs 16-17, the Kostak rate is Rs 400-450 and the Subject to Sauda is Rs. 4500. 

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      Ujjivan Small Finance Bank IPO News

      News 1 – Download DRHP Prospectus

      News 2 – Download RHP Prospectus

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