Ujjivan Bank
Mainboard₹746 Cr issue
+56.76%
Listing gain over issue price
Issue size
₹746 Cr
1 lot at cut-off
₹14,800
Lot size
400shares
Open
02 Dec 2019
Close
04 Dec 2019
Allotment
09 Dec 2019
Listing
12 Dec 2019
Listing performance
Issue price
₹37
Listed at
₹58
Listing-day close
₹55.95
Latest price
₹58.10
Close on 23 Oct 2026
Listing gain
+56.76%
Return since issue
+57.03%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Dec 2019 – 04 Dec 2019
- Listing date
- 12 Dec 2019
- Face value
- ₹10 per share
- Issue price
- ₹37 per share
- Lot size
- 400 shares
- Total issue size
- ₹746 Cr
- Promoter holding
- 94.40% → 83.32% pre-issue → post-issue
- ISIN
- INE551W01018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- IIFL Capital Services Ltd.
- Registered office
- Plot No. 2364/ 8,, Khampur Raya Village, Shadi Kampur,, Main Patel Road, New Delhi 110 008, India, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 8,20,94,594 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 400 shares per lot, in multiples, at ₹37
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 400 | ₹14,800 |
| Retail (max) | 13 | 5,200 | ₹1,92,400 |
| S-HNI (min) | 14 | 5,600 | ₹2,07,200 |
| S-HNI (max) | 67 | 26,800 | ₹9,91,600 |
| B-HNI (min) | 68 | 27,200 | ₹10,06,400 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
8,20,94,594
Anchor portion
₹304 Cr
at ₹37 per share
Valuation and performance
Valuation at offer price
₹37 per share
| Metric | Pre-issue | Post-issue |
|---|
About Ujjivan Bank
Ujjivan Small Finance Bank Limited was incorporated on July 4, 2016, as a wholly-owned subsidiary of Ujjivan Financial Services Limited (UFSL), its promoter. The Bank received RBI In-Principle Approval on October 7, 2015, and RBI Final Approval on November 11, 2016. The Bank commenced operations on February 1, 2017, following the transfer of UFSL's business undertaking pursuant to a Business Transfer Agreement. Operating as a small finance bank registered with the RBI and included in the second schedule to the RBI Act since July 3, 2017, the Bank is among the leading SFBs in India in terms of deposits, branch count, and geographical spread. The Bank makes money through its micro banking business (particularly group loans), personal loans, vehicle loans, agriculture loans, MSE loans, and affordable housing loans. As of June 30, 2019, the Bank operated 474 Banking Outlets across 24 states and union territories, including 120 in unbanked rural centres, plus 50 Asset Centres.
Company Analysis
from DRHPUjjivan Small Finance Bank Limited is a mass market-focused small finance bank catering to unserved and underserved segments in India, committed to building financial inclusion.
Ujjivan Small Finance Bank Limited was incorporated on July 4, 2016, as a wholly-owned subsidiary of Ujjivan Financial Services Limited (UFSL), its promoter. The Bank received RBI In-Principle Approval on October 7, 2015, and RBI Final Approval on November 11, 2016. The Bank commenced operations on February 1, 2017, following the transfer of UFSL's business undertaking pursuant to a Business Transfer Agreement. Operating as a small finance bank registered with the RBI and included in the second schedule to the RBI Act since July 3, 2017, the Bank is among the leading SFBs in India in terms of deposits, branch count, and geographical spread. The Bank makes money through its micro banking business (particularly group loans), personal loans, vehicle loans, agriculture loans, MSE loans, and affordable housing loans. As of June 30, 2019, the Bank operated 474 Banking Outlets across 24 states and union territories, including 120 in unbanked rural centres, plus 50 Asset Centres.
banking - small finance banksmicrofinancefinancial inclusionretail lending
Objects of the Issue
- Augmentation of our Bank's Tier – 1 capital base p.13
- Augmenting our Bank's Tier-I capital base to meet our Bank's future capital requirements such as organic growth and expansion and to comply with regulatory requirements for enhanced capital base p.73
- Not stated in this document section
- —
Issue Structure
- Total Issue
- ₹12,000 million
- Face Value
- ₹10 each
Business Model
The Bank generates revenue primarily through interest income on loans and advances (particularly from its micro banking segment through group loans), interest on treasury operations, and deposits from retail and institutional customers. The Bank's primary funding source post-transition to SFB operations is deposits, with retail deposits accounting for 43.09% of total deposits as of June 30, 2019, supplemented by refinance from NABARD and SIDBI.
Business Segments
Loans offered to individuals and families to assist in starting home-based businesses and to invest in income-generating activities, primarily through group loans with a joint liability model.
Personal loans offered to customers.
Loans to Micro, Small and Medium Enterprises, including both secured and unsecured products.
Loans for vehicle purchase.
Loans for agricultural purposes.
Loans for affordable housing.
Provides loans with tenure of six to 24 months to micro borrowers through a system of joint liability
Provides vehicle loans principally to first time users who have limited access to capital through formal banking channels
Focuses on relatively small ticket loans in the affordable housing segment
Provides advances to Micro and Small Enterprises eligible to be classified as PSL loans if requisite documentation is provided by the borrower
Distribution of third party insurance and bancassurance, and other financial services
Offers collateral-free group loans and individual loans to economically active, unserved and underserved customers. Group loans range between ₹2,000 to ₹60,000 for tenure up to two years at 22% declining rate. Individual loans range from ₹51,000 to ₹200,000 with interest rates of 23.25%-24.00%. Products include group business loans, family loans, agriculture loans, education loans, and emergency top-up loans.
Provides loans and overdraft facilities to enterprises engaged in manufacturing and service/trade activities. Secured enterprise loans range from ₹1 million to ₹10 million for 3-10 years at 14%-17%. Overdraft facility up to ₹5-10 million renewed annually. Business Edge Term Loan ranges ₹2.5-20 million at 12%-15%.
Designed to meet financing requirements of small and marginal farmers engaged in dairy, sericulture and farm mechanization. Agri group loans range ₹30,000-60,000 for 24 months at 22%. Kisan Suvidha individual loans range ₹60,000-200,000 for 24 months at 23.25%.
Targeted towards informal and semi-formal income segments for purchase of plots/houses and construction. Construction and Purchase Loans range ₹200,000-7.5 million for 36-240 months at 12.75%-15.75%. Home Improvement Loans range ₹200,000-2.5 million at 15.75%. Home Equity Loans range ₹300,000-2.5 million at 17.75%.
Unsecured loans offered to salaried customers in private/public sector. Minimum net income ₹12,000-15,000 per month. Loans range ₹50,000-1.5 million for 12-60 months at 18%-23% declining rates. Sourced through in-house loan officers, channel partners and online acquisitions with entirely digital loan processing.
Offers two-wheeler and electric three-wheeler loans. Two-wheeler loans range ₹26,000-85,000 for 12-36 months at 22%-27%. Electric three-wheeler loans range ₹50,000-175,000 for 12-36 months at 20%-24%.
Term loans extended to credit acceptable NBFCs and microfinance institutions. Average ticket size ₹100-250 million. Single entity cap ₹500 million, single group cap ₹750 million. Average tenor 2-3 years with 5-year cap. FIG lending capped at 10% of overall lending portfolio.
Offers current accounts (Business Edge, Premium, Regular), savings accounts (Regular, Senior Citizen, Corporate Salary, Minor, Basic BSBD, Institutional Segment, NRO, NRE), term deposits (Fixed, Recurring, TASC, Tax Saver), and institutional deposits from mutual funds, banks, insurance companies and NBFCs.
Provides microfinance loans to micro entrepreneurs and individuals in rural and semi-urban areas
Provides loans to micro and small enterprises
Provides loans for affordable housing
Provides group lending to financial institutions
Provides personal loans to individuals
The Treasury Segment primarily consists of net interest earnings from the Bank's Investment portfolio, money market borrowing and lending, gains or losses on Investment operations and income from sale of PSLC.
The Retail Banking Segment serves retail customers through a branch network and other delivery channels. Retail Banking includes lending to and deposits from retail customers and identified earnings and expenses of the segment. This segment raises deposits from customers and provides loans and other services to customers. Revenues of the retail banking segment are derived from interest earned on retail loans, processing fees earned and other related incomes.
The Wholesale Banking Segment provides loans to Corporates and Financial Institutions. Revenues of the wholesale banking segment consist of interest earned on loans made to customers.
Group loans and individual loans to economically active poor, primarily women
Lending to agriculture and allied sectors
Lending to micro and small enterprises
Housing finance for affordable segments
Lending to financial institution groups
Personal lending products
Lending for vehicle purchases
Deposit products including savings accounts, current accounts, and term deposits
ATM-cum-debit cards, Aadhaar enrollment, insurance distribution, POS terminals
The Bank is primarily engaged in the banking business, providing microfinance and small-ticket lending services.
SWOT Analysis
Strengths
- • Leading SFB position among peers in deposits, branch count and geographical spread(p.11)
- • Rapid expansion of Banking Outlet network with 474 outlets including 120 in unbanked rural centres(p.31)
- • Strong operational growth with 287 Banking Outlets operationalized in Fiscal 2019(p.32)
- • Improved profitability with PAT of ₹1,992.18 million in Fiscal 2019(p.14)
- • Strong net interest margins at 10.93% in Fiscal 2019(p.34)
- • Deep understanding of mass market serving unserved and underserved segments(p.77)
- • Customer centric organization with multiple delivery channels(p.77)
- • Pan-India presence(p.77)
- • Technology driven operating model with advanced digital platform(p.77)
- • Robust risk management framework(p.77)
- • Strong track record of financial performance(p.77)
- • Lowest GNPA among SFBs; strong asset quality(p.103)
- • Most geographically diversified SFB portfolio across 24 states(p.88)
- • Second-highest provision coverage ratio among SFBs(p.86)
- • Strong deposit growth; retail deposits increasing significantly(p.104)
- • Rapid advance growth with strong profitability trajectory(p.100)
- • Customer-centric model with multiple delivery channels and digital adoption(p.101)
- • Deep understanding of mass market and unserved/underserved segments through promoter NBFC experience(p.101)
- • Rapid growth and scale in banking operations(p.131)
- • Expanding retail deposit base(p.169)
- • Recognition for workplace culture and innovation(p.131)
- • Broad geographic distribution and risk diversification(p.179)
- • Strong capital adequacy ratios(p.179)
- • Improving asset quality and provisions management(p.185)
- • Structured portfolio quality monitoring framework(p.187)
- • Profitability improvement trajectory(p.169)
- • Strong deposit growth and funding base(p.194)
- • Rapid advance portfolio expansion with low NPA ratio(p.217)
- • Strong capital adequacy ratio well above regulatory minimum(p.213)
- • Profitability improvement with growing net profit(p.195)
- • Diversified revenue sources including retail banking focus(p.238)
- • Leading position among SFBs with diversified geographic presence(p.262)
- • Significant customer base and extensive banking outlet network(p.262)
- • Strong technology infrastructure and digital banking capabilities(p.263)
- • Robust and improving profitability trajectory(p.263)
- • Low non-performing asset levels(p.263)
- • Strong credit ratings from reputable agencies(p.263)
- • Diversified product portfolio across asset and liability segments(p.263)
Weaknesses
- • Heavy dependence on micro banking business with 84.67% of advances as of March 31, 2019(p.24)
- • Very limited operating history with only two months of operations reflected in Fiscal 2017(p.24)
- • Low CASA ratio of only 10.63% as of March 31, 2019, indicating dependency on costlier retail deposits(p.36)
- • Significant deposit concentration with top 20 depositors accounting for 41.84% of deposits in Fiscal 2019(p.31)
- • All Banking Outlets and offices are on leased premises with no owned infrastructure(p.31)
- • History of fraud and misconduct by employees including forging signatures and bribery(p.30)
- • RBI inspection revealed multiple operational deficiencies including lack of fraud management system and weak KYC protocols(p.30)
- • Promoter holds 100% pre-IPO shareholding and must divest to 40% within five years per RBI requirements(p.23)
- • High customer default risk from low-income borrowers with limited credit history(p.37)
- • Difficulty in accurate credit assessment due to limited borrower documentation(p.37)
- • High employee attrition rate affecting business stability(p.38)
- • Negative cash flows from operating activities in recent periods(p.40)
- • Dependence on senior management with key person risk(p.38)
- • Related party transaction concerns noted by RBI(p.41)
- • Short tenure micro banking loans creating income volatility(p.40)
- • Low CASA ratio relative to peers; high deposit cost in early years(p.85)
- • Limited branch maturity and deposit base compared to established banks(p.87)
- • High operating costs relative to advances; high cost-to-income ratio(p.90)
- • Asset concentration risk in microfinance portfolio(p.87)
- • Dependence on UFSL as single holding company and promoter(p.158)
- • Relatively recent market entrant with limited operating history(p.164)
- • High cost-to-income ratios(p.168)
- • Absence of dividend history on equity shares(p.163)
- • High unsecured advance portfolio creating credit risk(p.219)
- • Significant dependence on deposit funding with rapid growth(p.201)
- • Concentration in top depositors indicating funding vulnerability(p.220)
- • High operating expense ratio relative to income(p.195)
- • Significant reliance on micro banking portfolio despite diversification efforts(p.265)
- • High operating expense ratio relative to total income(p.265)
- • Rapid expansion requiring continuous capital investment(p.265)
- • Significant contingent liabilities and capital commitments(p.283)
- • Limited operating history as an SFB with uncertain market acceptance(p.266)
- • Significant litigation involving bank employees and promoter for criminal misconduct, fraud, and misappropriation(p.295)
- • Substantial litigation against promoter (UFSL) including PIL alleging illegal finance business and recovery practices(p.299)
- • High debt levels with long-term debt to shareholders' funds ratio of 2.04(p.291)
- • Restrictive covenants limiting strategic flexibility including change in capital structure, management, and dividend declarations without lender approval(p.293)
- • Lender nominee director on Board and observer rights limiting governance autonomy(p.293)
Opportunities
- • Expansion into new product segments including personal loans, vehicle loans, agriculture and MSE lending(p.28)
- • Significant growth potential in underserved and unserved microfinance market(p.11)
- • Planned expansion of Banking Outlet network with 120 outlets in unbanked rural centres representing financial inclusion opportunity(p.23)
- • Opportunity to grow CASA deposits to reduce cost of funds(p.36)
- • Opportunity to scale business across 24 states and union territories with established multi-state infrastructure(p.31)
- • Massive market opportunity in financial inclusion with unserved segments(p.84)
- • Expansion of non-interest income through bancassurance and fee-based services(p.38)
- • Technology-enabled customized products for underserved markets(p.84)
- • Deposit mobilization advantage over NBFCs through banking license(p.85)
- • Industry growth trajectory with 23-25% CAGR expected through FY21(p.85)
- • High financial inclusion penetration opportunity in underpenetrated regions(p.85)
- • Large addressable market in underserved and unserved segments(p.88)
- • Microfinance portfolio growth at 25% CAGR through rising penetration(p.88)
- • SFB loan portfolio growth at 23-25% CAGR driven by market opportunity and geographic diversification(p.85)
- • MSME financing growth opportunity; market expected to grow 12-13% till Fiscal 2023(p.91)
- • Personal loan segment robust growth potential at 23-25% CAGR through rising credit penetration(p.93)
- • Affordable housing loans expected to grow 9-10% CAGR; government support and GST benefits(p.96)
- • Technology and fintech partnerships to drive efficiency and customer acquisition(p.91)
- • Semi-urban and rural expansion opportunity with lower competition and underbanked areas(p.90)
- • Expansion of affordable housing lending segment(p.174)
- • Growth in micro and small enterprise lending(p.131)
- • Expansion into tier II and tier III markets(p.180)
- • Growing deposit mobilization from retail customers(p.169)
- • Expansion of ATM network and digital banking channels(p.188)
- • Significant unserved and underserved market targeting(p.206)
- • Priority sector lending expansion particularly in agriculture and micro-enterprises(p.220)
- • Regulatory mandate-driven growth through scheduled bank status(p.206)
- • Retail banking and housing loan expansion potential(p.220)
- • Digital banking and fintech service development(p.206)
- • Expansion of retail deposits and CASA ratios(p.265)
- • Growth in individual loan products and diversification(p.264)
- • Expansion into underbanked and unbanked rural centres(p.263)
- • Technology-enabled operational efficiency improvements(p.263)
- • Selective expansion of banking outlet network(p.263)
- • Increased deposits growth driving business expansion(p.263)
- • RBI approval for 607 banking outlets providing expansion capacity across Tier 1-6 centres and unbanked rural centres(p.306)
- • Mandated three-year listing requirement under RBI Final Approval creating capital raising opportunity(p.309)
- • Access to centralised payment systems (RTGS, NEFT) and clearing infrastructure enabling operational scale(p.306)
Threats
- • Stringent RBI regulatory requirements and compliance burden specific to SFBs including mandatory 50% PSL lending(p.24)
- • Intense competition from established scheduled commercial banks, NBFCs, microfinance institutions and emerging fintech companies(p.27)
- • RBI's stated plan to introduce on-tap licensing of SFBs which will increase competition(p.27)
- • Increasing interest rate volatility could reduce Net Interest Margins despite 10.93% in Fiscal 2019(p.34)
- • Geographic concentration risk with 45.01% of advances from Karnataka, Tamil Nadu and West Bengal as of March 31, 2019(p.29)
- • Mandatory listing requirement within three years from commencement (by January 31, 2020) creates near-term dilution pressure(p.24)
- • Funding constraints due to restrictions on inter-bank borrowings and floating charges on assets post-SFB conversion(p.26)
- • Micro banking portfolio highly vulnerable to macroeconomic shocks, natural disasters and policy changes like agricultural loan waivers(p.24)
- • Regulatory changes and compliance requirements affecting banking operations(p.45)
- • General economic slowdown and macroeconomic volatility(p.42)
- • Rising inflation eroding profit margins(p.45)
- • Cyber threats to online banking operations(p.39)
- • Competition from fintech companies and digital disintermediation(p.40)
- • Adverse changes in India's credit rating by international agencies(p.46)
- • Natural and man-made disasters disrupting operations(p.47)
- • Changes to PSL compliance requirements affecting loan classification(p.37)
- • Competition from public/private sector banks with higher trust and better rates in rural areas(p.87)
- • Regulatory requirement of 75% priority sector lending limiting product diversification(p.85)
- • Low average deposit per customer in rural areas constraining profitability(p.87)
- • Geographic concentration risks and state-specific regulatory/political risks(p.91)
- • Dependence on adequate capital availability for MFI/NBFC growth(p.89)
- • Economic cyclicality and inflation impacting asset quality and loan demand(p.117)
- • Competitive microfinance banking landscape(p.29)
- • Regulatory and RBI compliance risks(p.29)
- • Interest rate and deposit cost volatility(p.169)
- • Economic cycles and lending portfolio concentration in microfinance(p.174)
- • Regulatory compliance burden and listing mandate risk(p.206)
- • Rising cost of deposits and funding pressures(p.205)
- • Competitive pressure in small finance banking sector(p.206)
- • Economic downturn impact on priority sector advances(p.217)
- • Customer complaint escalation indicating service quality concerns(p.224)
- • Extensive banking sector regulation and RBI oversight(p.263)
- • Stringent capital adequacy and operational requirements for SFBs(p.264)
- • Intense competition from banks and financial institutions(p.266)
- • Competition from new on-tap SFB licenses(p.266)
- • Interest rate volatility affecting net interest margins(p.265)
- • Dependence on deposit mobilization for funding(p.265)
- • Potential credit rating downgrades affecting borrowing costs(p.265)
- • Fintech and alternative lending model competition(p.266)
- • Restrictive RBI approval requirement limiting shareholding to less than 5% without prior RBI approval(p.313)
- • Competitive banking industry pressures noted as ongoing risk factor(p.290)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ujjivan Financial Services Limited | Promoter | 100% | — |
| Ujjivan Financial Services Limited (UFSL) | Promoter | 100% | [●]% |
| Ujjivan Financial Services Limited (UFSL) | Promoter | 100% | — |
| Ujjivan Financial Services Limited (UFSL) | Promoter | 100% | — |
| Ujjivan Financial Services Limited (UFSL) | Holding Company (100% holding) | — | — |
| Ujjivan Financial Services Limited (UFSL) | Holding Company / Promoter | 100% | — |
| Ujjivan Financial Services Limited (UFSL) | Promoter | — | — |
| Ujjivan Financial Services Limited (UFSL) | Promoter | — | — |
Leadership
Samit Kumar Ghosh · Managing Director and Chief Executive Officer
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.
Ujjivan Bank IPO FAQs
What is the lot size of Ujjivan Bank IPO?
The minimum lot size of Ujjivan Bank IPO is 400 shares. One lot costs ₹14,800 at the cut-off price.
When does Ujjivan Bank IPO open and close?
Ujjivan Bank IPO opened for subscription on 02 Dec 2019 and closed on 04 Dec 2019.
What is the listing date of Ujjivan Bank IPO?
Ujjivan Bank IPO listed on 12 Dec 2019.