Ujjivan Small Finance Bank IPO Analysis, IPO Review, Dates, Price Bands, Market Lot, Ujjivan Small Finance Bank IPO Grey Market Price Details
Ujjivan Small Finance Bank is all set to come out with its Rs 750 crore initial public offering on Monday. The issue comes on the heels of the CSB Bank IPO offer, which received an overwhelming 87 times subscription earlier this week.
Ujjivan Small Finance Bank’s holding company Ujjivan Financial Services got listed in 2016. The Ujjivan Small Finance Bank was to list within three years of getting a bank license from RBI even when the holding company is listed.
Among peers, AU Small Finance Bank had a successful listing in 2017. Equitas Small Finance Bank is another SFB looking to list to meet RBI’s norms by floating its IPO by March 2020.
The initial public offer (IPO) of Ujjivan Small Finance Bank will open on December 2 for which the price band has been fixed at Rs 36-Rs 37. The bank aims to raise Rs 750 crore through the issue. Bidding for the IPO will close on December 4. The proposed date for the listing of the bank on bourses is December 12.
USFB has appointed Kotak Mahindra Capital Company, IIFL Securities and JM Financial as the book running lead managers to the issue.
| Open Date: | Dec 02 2019 |
| Close Date: | Dec 04 2019 |
| Total Shares: | 20.27 Crores |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | 100% Book Building |
| Issue Size: | 750 Crores Cr. |
| Lot Size: | 400 Shares |
| Issue Price: | ₹ 36-37 Per Equity Share |
| Listing At: | NSE, BSE |
| Listing Date: | Dec 11, 2019 |
| Upcoming IPO 2020 | Upcoming NCD 2020 |
Overview of Ujjivan Small Finance Bank LTD.
The Ujjivan Small Finance Bank (USFB) is a growing small finance bank (SFB) in India with mass-market focus catering to unserved and underserved segments and committed to building financial inclusion in the country. USFB started its operations by the name UFSL in 2005 with NBFC business and got approval from RBI in 2015 to establish an SFB.
The bank has a strong presence in Southern and Eastern states of India particularly, Karnataka, Tamil Nadu, and West Bengal. As of June 30, 2019, USFB served 4.72 million customers and operated from 474 banking outlets.
Ujjivan Small Finance Bank (USFB) offers various asset and liability products and services. USFB asset products are
- Loans to 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, USFB offers:
- Savings accounts
- Current accounts
- A variety of deposit accounts
Other Offerings from USFB
- Non-credit offerings comprising ATM-cum-debit cards
- Aadhaar enrolment services
- Distribute third party insurance products
- Point of sales (“POS”) terminals
The bank also provides customers with various digital platforms including internet banking, mobile banking, SMS banking, bill payments, biometric ATMs and RuPay Platinum debit cards. The bank has a tablet-based loan origination system, cashless repaying of loan and a robust back-end operating system to bring down turn-around time for customers.
Management Team:
- Mr. Samit Kumar Ghosh (Designation: Managing Director and Chief Executive Officer)
- Mr. Jayanta Kumar Basu (Designation: Non-Executive Director)
Objectives of the Issue:
- 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.
Financials of Ujjivan Small Finance Bank (USFB) Limited IPO:
Ujjivan Bank Financials for past 3 Years
Past performance and financial results of Ujjivan Bank.
| USFB IPO Financials | 31-Mar-2019 | 31-Mar-2018 | 31-Mar-2017* |
|---|---|---|---|
| Total Assets | ₹13742.21 Cr | ₹9472.87 Cr | ₹9435.91 Cr |
| Total Income | ₹2037.58 Cr | ₹1579.36 Cr | ₹223.87 Cr |
| Total Expense | ₹1838.36 Cr | ₹1572.49 Cr | ₹223.84 Cr |
| Net Profit/Loss | ₹204.39 Cr | ₹6.89 Cr | ₹.03 Cr |
| Particulars ( in Crs) | 3MFY20 | FY18-19 | FY17-18 |
| Deposits | 7956 | 7379 | 3772 |
| Net Advances | 11327 | 10552 | 7336 |
| Net Interest Income (NII) | 352 | 1106 | 861 |
| Non-Interest Income | 100 | 205 | 111 |
| Operating Profit/(Loss) | 161 | 309 | 319 |
| Provisions and Contingencies (Other than tax) | 66.7 | 109 | 312 |
| Net Profit /(Loss) | 94.4 | 199.2 | 6.8 |
| Key Performance Indicators | |||
| Earnings per share | 0.66 | 1.2 | 0.05 |
| Equity and Preference Shares | 164 | 164 | 164 |
| Book value per share | 11.67 | 11.09 | 10 |
| Net Interest Margin% | 10.51% | 10.93% | 10.31% |
| Cost-Income Ratio% | 64.37% | 76.54% | 95.53% |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Ujjivan Small Finance Bank Ltd | 10 | 1.20 | 30.83 | 9.49% | 12.64 |
| AU Small Finance Bank Ltd | 10 | 13.16 | 53.04 | 12.07% | 108.19 |
| Equitas Holdings Limited | 10 | 5.18 | 21.19 | 7.24% | 71.57 |
| Bandhan Bank Limited | 10 | 16.36 | 30.42 | 17.42% | 93.89 |
| CreditAccess Grameen Ltd | 10 | 23.37 | 21.91 | 13.18% | 164.75 |
Comparison With Peers:
AU Small Finance Bank is the listed peer of Ujjivan Small Finance bank. Let us compare both and see how AU Small has performed in the last year and how much it is valued now?
| Parameter(Crores) | Ujjivan Small Finance Bank | AU Small Finance Bank |
| Deposits | 7379 | 19422 |
| Net Advances | 10552 | 22818 |
| Net Interest Income (NII) | 1106 | 1190 |
| Non-Interest Income | 205 | 462 |
| Operating Profit/(Loss) | 309 | 722 |
| Provisions and Contingencies (Other than tax) | 109 | 142 |
| Net Profit /(Loss) | 199.2 | 381 |
| Book value per share | 11.09 | 108.28 |
| P/B | 3.3x | 7.6x |
Ujjivan Small Finance Bank IPO Dates & Price Band: (Tentative)
- IPO Open: 2nd Dec 2019
- IPO Close: 4th Dec 2019
- IPO Size: Approx ₹750 Crore (Approx)
- Face Value: ₹10 Per Equity Share
- Price Band: ₹36 to ₹37 Per Share
- Listing on: BSE & NSE
- Equity: 208,333,333 Shares
- Allocation: QIB: 75%, HNI: 15%, Retail: 10%
- Tips for Investing in Ujjivan Small Finance Bank IPO
Ujjivan Bank IPO is a main-board initial public offering of 208,333,333 equity shares of the face value of ₹10 aggregating up to ₹750.00 Crores.
The issue price of the IPO is ₹36 to ₹37 Per Equity Share. The minimum order quantity is 400 Shares per application and the offer type is Book Built Issue.
The Ujjivan Bank IPO opens on Dec 2, 2019 and closes on Dec 4, 2019.
Ujjivan Bank IPO application can be done through banks using ASBA online or through brokers trading account using UPI. All popular banks i.e. HDFC, ICICI, and SBI offer online IPO applications. An investor can also apply directly through their broker (i.e. Zerodha, Sharekhan) using UPI as a payment method.
How to Apply IPO Online through ASBA?
Now you can apply in online IPO application via Zerodha back office software “console”. You can subscribe Ujjivan Bank IPO with Zerodha. You need to apply the application online using UPI payment mode. To purchase Ujjivan Bank IPO with Zerodha, you must be Zerodha customer and have a UPI payment setup.
The finalization of Basis of Allotment for Ujjivan Bank IPO will be done on Dec 9, 2019, and the allotted shares will be credited to your demat account by Dec 11, 2019. Check the Ujjivan Bank IPO allotment status.
The Ujjivan Bank IPO listing date is not yet announced. The tentative date of the Ujjivan Bank IPO listing is Dec 12, 2019.
Ujjivan Bank IPO lot size is 400 Shares and the minimum order quantity is 400 Shares.
Ujjivan Bank IPO price for retail investors is ₹36 – ₹37 per share. The company is also offering a special discount of ₹2 Shareholders.
To apply in one application of Ujjivan Bank IPO you need ₹36 – ₹37 per share(Issue Price) – ₹2 Shareholders (discount) * 400 Shares (Minimum Order Qty) =₹14800.
Ujjivan SFB IPO is accepting 5357 applications under Shareholder quota. Eligible UFSL Shareholders bidding in the UFSL Shareholder Reservation Portion are entitled to Bid at the Cut-off Price with a special discount of ₹2 Per Share. The cut-off date for UFSL Shareholders was 22nd Nov 2019.