Bangalore-based microfinance firm Ujjivan Financial Services Pvt Ltd has raised Rs 29 crore ($5.8 million) through a private placement of non-convertible debentures (NCDs). The NCDs were subscribed by Developing World Markets (DWM) and listed on the Bombay Stock Exchange.
The transaction comes a little over a year after Ujjivan raised Rs 40 crore through NCD placement with DWM only. The company followed that up with two issues with Standard Chartered Bank totalling Rs 55 crore. Ujjivan also raised over Rs 100 crore in debt funding from a set of public and private sector banks, including SIDBI, among others.
“This transaction once more reiterates the confidence of banks and financial investors in our mission, business model and our portfolio quality. We continue to show consistent performance through a difficult period for the industry,” said Samit Ghosh, managing director of Ujjivan.
Ujjivan, a partner of the Grameen Bank of Bangladesh, also raised Rs 17.3 crore through its first securitisation transaction in May 2011.
Founded by managing director & CEO Samit Ghosh, Ujjivan is headquartered in Bangalore, with offices in New Delhi, Kolkata and Pune. As of March 2011, it operates a network of 302 branches in 20 states.
Ujjivan has a portfolio of Rs 625.14 crore and it has disbursed loans worth Rs 1,141 crore in FY11. The firm reported a net profit of Rs 11.4 crore and total income of Rs 108.8 crore in FY11.
DWM has also subscribed to NCDs of Bangalore MFI Grameen Financial Services and invested Rs 50 crore in Chennai's Smile Microfinance. US-based DWM currently manages approximately $785 million.