Ujjivan Small Finance Bank - the highest subscribed IPO of year 2019 - Indian IPO Blog

Saturday, December 7, 2019

Ujjivan Small Finance Bank - the highest subscribed IPO of year 2019

The initial public offering of Ujjivan Small Finance Bank was subscribed 166 times on the last day of the share sale

The IPO overtook Indian Railway Catering And Tourism Corporation Ltd. as the most subscribed IPO in 2019, data on the National Stock Exchange website showed

The small finance bank, according to its red herring prospectus, aimed to raise nearly Rs 750 crore by issuing new shares of face value Rs 10 each in a price band of Rs 36-37 apiece. The bid lot size was 400 equity shares and multiples thereof.

Ujjivan Small Finance Bank Limited (USFB) offers small finance to underserved & unserved segments in India. The bank aims to work for the financial inclusion of the country. USFB Bank is promoted by Ujjivan Financial Services Limited (UFSL) which is an NBFC providing financial services to the economically active poor, who are not served by the Financial Institutions.

UFSL offers small size loan products to economically poor women, individual loans to Micro and Small Enterprises (MSEs). It follows the integrated lending approach where the company considers technology infrastructure and back-end support functioning before lending.

USFB has a wide presence across 24 states and union territories in India. As on 30 June 2019, it has 4.72 million customers, 474 Banking Outlets, 387 ATMs, two 24/7 phone banking units (in Bengaluru and Pune) and 50 additionally operated Asset Centres. Customers can use USFB mobile banking application in 5 languages.

The bank has a diversified portfolio offering savings, current & deposit accounts, Aadhaar enrolment services, ATM-cum-debit cards, point of sales terminals, and distributing 3rd party insurance products. USFB is focussed on digital platform and provides bill payments, SMS banking, mobile banking, RuPay Platinum debit cards, internet banking, biometric ATMs services digitally. The bank also allows registering savings account on UPI based mobile applications. It has an automated tablet-based loan origination system, digitalised credit processing and automated receipt collection system to reduce the turn around time of customers.

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