Bangalore-based Ujjivan Financial Services Pvt. Ltd. is likely to go public to raise funds required for it to transform into a small finance bank (SFB) next year, reported MINT citing its earlier hints at the MFI holding talks with investment banks, speculating an early January filing for IPO.
Ujjivan was originally planning to raise Rs. 1,500 crore through its initial share sale, but now with IPO plans, the fund-raising may go up to Rs.2,000 crore from the IPO channel. Since foreign ventures in Ujjivan amount to 88%, the MFI should first reduce the foreign equity to less than 49% as required by the regulator and the IPO money may go in the direction.
Currently, UK’s development finance institution CDC is the biggest shareholder a 12.69% stake, followed by IFC and private equity fund CX Partners, which own 11.84% and 10.69%, respectively.
Another MFI Equitas too has filed its draft IPO paper with Sebi in October. Other six MFIs issued small finance bank licences by RBI include Janalakshmi Financial Services Pvt. Ltd, Au Financiers (India) Ltd, Capital Local Area Bank Ltd, Disha Microfin Pvt. Ltd, ESAF Microfinance and Investments Pvt. Ltd, RGVN (North East) Microfinance Ltd, Suryoday Micro Finance Pvt. Ltd and Utkarsh Micro Finance Pvt. Ltd.