Ujjivan mops up Rs 265 cr from anchor investors

Ahead of its IPO tomorrow, microfinance player Ujjivan Financial Services today raised nearly Rs 265 crore from anchor investors by selling shares at a price of Rs 210 apiece.
The anchor investors include 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.
Price band for the 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 said it has allotted over 1.26 crore shares to anchor investors raising nearly Rs 265 crore.

Ujjivan, 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. Another microfinance firm Equitas Holdings came out with its IPO this month.
The public issue of Ujjivan, 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 RBI guidelines for setting up a small finance bank.
Ujjivan, 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.