Latest News | Ujjivan SFB Launches QIP at Floor Price of Rs 21.93

New Delhi, Sep 12 (PTI) Ujjivan Small Finance Bank (SFB) on Monday launched its QIP (Qualified Institutional Placement) with a floor price of Rs 21.93 per share to meet the regulatory requirement ahead of merger with its parent company.

In February this year, the lender had informed raising of up to Rs 600 crore by issuing shares to qualified institutional buyers in order to meet the regulatory requirements for amalgamation with its parent firm Ujjivan Financial Services.

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The Merger and Placement Committee of the board has, at its meeting held on September 12, 2022, passed resolutions for authorising the opening of the issue today and approved the floor price for the issue at Rs 21.93 per equity share, Ujjivan SFB said in a regulatory filing.

Floor price refers to the minimum price in a share issuance programme.

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Ujjivan SFB said a meeting of the Merger and Placement Committee of the board is scheduled to be held on September 15, 2022 to consider and approve the issue price, including any discount.

An amalgamation scheme between the bank and its promoter Ujjivan Financial Services Ltd (USFL) was passed by their respective boards of directors, shareholders and creditors in October 2021.

The bank has already sought Sebi nod for a scheme of amalgamation to achieve the Minimum Public Shareholding (MPS).

Ujjivan SFB had said its board evaluated various methods to achieve the MPS by reducing USFL's holding in the bank from the present 83.32 per cent to 75 per cent or lower.

As per RBI guidelines on small finance banks, it is mandatory for the promoter to reduce the stake in the subsidiary to 40 per cent within five years of commencement of operations by the SFB.

Ujjivan SFB commenced operations in February 2017.

Stock of Ujjivan SFB closed at Rs 25.30 apiece on BSE, up by 5.42 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)