New Delhi: Ujjivan Small Finance Bank has received markets regulator SEBI's go-ahead to raise Rs 1,200 crore through an initial public offer (IPO).
Microfinance lender Ujjivan Financial Services is the holding company of Ujjivan Small Finance Bank.
The bank, which had filed draft papers with the regulator in August, obtained its observations on 16 October, according to the Securities and Exchange Board of India (SEBI).
The observations are very important to any company for launching public issues like initial public offer (IPO), follow-on public offer (FPO) and rights issue.
As per the draft papers, the bank is proposing to undertake an initial public offering of equity shares of the face value of Rs 10 each, comprising a fresh issue of shares aggregating up to Rs 1,200 crore.
The proposed issue includes a reservation of equity shares aggregating up to around Rs 120 crore for subscription by eligible shareholders of Ujjivan Financial.
The proceeds of the issue will be utilised towards augmenting the company's capital base to meet future requirements.
Ujjivan Financial Services had raised Rs 300 crore in February from a clutch of investors, including HDFC Life and Sundaram MF, in a pre-IPO placement. The funding valued the company at around Rs 2,000 crore.
After the IPO, Ujjivan Small Finance Bank will join listed peers like AU Small Finance Bank.
Earlier this month, Kerala-based CSB Bank, formerly known as Catholic Syrian Bank, received SEBI's go-ahead to launch an initial share-sale.
Updated Date: Oct 22, 2019 19:35:18 IST