| Log in
Photo Credit: ThinkStock

PE-backed Ujjivan launches small finance banking operations

02 February, 2017

Bengaluru-based listed microfinance firm Ujjivan Financial Services Ltd has launched small finance banking operations after transferring its business to Ujjivan Small Finance Bank Ltd, a new entity.

Ujjivan Small Finance Bank that started operations on Wednesday plans to test technical aspects, connectivity, ATM channels and effectiveness of different aspects of SFB business over the next one month and then increase branch presence across India, the company said in an earnings call.

The firm, which mopped up Rs 882 crore in its IPO last year, initially planned to launch branches within three months after launching operations. Now it plans to spread branches across India over two financial years.

Its IPO was covered over 40 times in May last year. Its peer Equitas Holdings also attracted investors by the droves as its public issue was covered more than 16 times. 

The decade-old firm completed six rounds of fundraise before going public which enabled an infusion of Rs 578 crore from primary transactions and Rs 361 crore of secondary sales to provide exits to early stage equity investors.

Its investors include CDC Group, NewQuest Asia Investments II Ltd, Alena Pvt Ltd, CX Partners Fund I, Bajaj Holdings & Investment Ltd, AAJV Investment Trust, International Finance Corporation and Elevar Equity Mauritius.

Small finance banks

Early this week, Pune-based Suryoday Small Finance Bank also launched small finance banking operations. The firm said it is planning to mop up Rs 100 crore more through a rights issue which will take its net worth to Rs 450 crore. It also expects to go public in 2020.

Among the 10 firms that got licence from RBI to launch small finance banks, Jalandhar-based Capital Small Finance Bank Ltd was the first to launch operations in April last year even as the bank is in talks with investors to raise upto Rs 100 crore. It already received funding commitments from insurance companies.

IPO bound AU Financiers (India) Ltd also said it is looking to start operations by April this year.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
CDC scores high returns from financial services portfolio firm in India

CDC scores high returns from financial services portfolio firm in India

Bruhadeeswaran R 7 months ago
UK-based development finance institution CDC Group Plc has sold some stake in...
CDC yields rich harvest from stake sale in financial services firm Ujjivan

CDC yields rich harvest from stake sale in financial services firm Ujjivan

Bruhadeeswaran R 4 months ago
UK-based development finance institution CDC Group Plc has sold bulk of its...
Exclusive: Creador bets on another Indian financial services firm

Exclusive: Creador bets on another Indian financial services firm

Swet Sarika 1 month ago
South- and Southeast Asia-focused private equity firm Creador, which has made a...
No Comments

PE-backed Ujjivan launches small finance banking operations

Powered by WordPress.com VIP