Microfinance lender Ujjivan Financial
Services is the holding company of Ujjivan SFB.
The shareholders of Ujjivan Financial
Services will get shares at a discount of Rs 2 per share to the final issue price.
The SFB reduced its issue size after fundraising in a pre-IPO placement of over 71.4 million shares totalling Rs 250 crore, at about Rs 35 per share.
The SFB had received approval for the public issue from the Securities and Exchange Board of India in October.
In its red herring prospectus, the SFB said proceeds of the fresh issue would be utilised towards augmenting its tier–1 capital base to meet future requirements, and issue expenses.
The book running lead managers to the issue are Kotak Mahindra Capital Company, IIFL Securities, and JM Financial. Karvy Fintech is the registrar to the issue.
While talking about the economic slowdown, Ghosh said, “There is no slowdown in the microfinance sector and, in fact, we have seen some growth opportunities in the housing sector because some players left, but yes, there is slowdown in the micro, small and medium enterprises sector.”
Commenting on the reverse merger possibilities, Ghosh added, “We have been in discussion with the RBI about the reverse merger at the end of five years. The RBI has told us once you complete five years, you can come back to us. Based on their comfort level with us, they would consider it for a reverse merger.”