Ujjivan Small Finance Bank Likely To Launch Qip Early Next Week

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Ujjivan Small Finance Bank is likely to launch a qualified institutional placement (QIP) next week to raise around Rs 400 to 500 crore, sources told CNBC-TV18. The QIP is likely to have a minimum base offer of Rs 20 crore equity shares.

This capital raise could strengthen the balance sheet of the bank. Two domestic bankers have been appointed for this issue, according to the sources.

The stock closed 1.44 percent lower at Rs 24 per share on the BSE today. It has gained 17.36 percent in the last one month and 17 percent in the last one year.

Last month, the bank raised the interest rate by up to 1.5 percent on fixed deposits.

The bank reported a strong set of earnings for the June-ended quarter (Q1FY23). The company’s business momentum looks healthy and the asset quality has improved with the net non-performing asset (NPA) being the lowest across lenders in the quarter.

In an interview with CNBC-TV18, Ittira Davis, MD & CEO of the bank, had said that they had fundraising plans before the current year ends.

“We have got approval from the shareholders to do a QIP to bring down the minimum shareholding or take the minimum public shareholding up to 25 percent from the current level. So, to that extent, we will be looking to raise some funds,” Davis had said.