Ujjivan Small Finance Bank has launched a qualified institutional placement (QIP) to raise up to Rs 475 crore.
The Securities and Exchange Board of India (SEBI) floor price is at Rs 21.93 per share, the indicative price is at Rs 21, which is a 17 percent discount to current market price (CMP). The closing price is Rs 25.3 on the Bombay Stock Exchange (BSE) as on September 12, 2022.
The indicative issue size is up to Rs 475 crore.
The proceeds would be used for augmenting the bank's tier I capital base, for GCP or any other purposes. The bank also intends to achieve minimum public shareholding requirement under the SCRR, as amended.
On September 9, CNBC-TV18 had reported that the bank was likely to launch a QIP in the coming week to raise around Rs 400-500 crore.
Last month, Ujjivan Small Finance Bank raised the interest rate by up to 1.5 percent on fixed deposits.
The bank reported a strong set of earnings for the June quarter (Q1FY23). The company's business momentum looks healthy and the asset quality has improved with the net non-performing assets (NPAs) being the lowest across lenders in the quarter.
In an interview with CNBC-TV18, Ittira Davis, MD & CEO of the bank, had said that they had fundraising plans before the current year ends.
“We have got approval from the shareholders to do a QIP to bring down the minimum shareholding or take the minimum public shareholding up to 25 percent from the current level. So, to that extent, we will be looking to raise some funds," Davis had said.
The timelines mentioned here are indicative, subject to receipt of relevant approvals or change and are based on the potential early closure of the transaction. This is for informational purposes only and is not a solicitation of any bid from you or any other investor.
(Edited by : Shoma Bhattacharjee)
First Published: Sept 12, 2022 8:45 PM IST
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