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Capital Raise Story
Ujjivan has always attracted and continues to be supported by the best of investors. Ujjivan has successfully completed six rounds of capital raise up to FY 2014-15 before its IPO which enabled an infusion of Rs. 578 Crore from primary transactions and Rs.361 Crore of secondary sales to provide exits to early stage equity investors with an average ROE of 15 to 25 per cent per annum.
Two of our earliest institutional investors, who have fully exited during this phase are Bellwether and Michael & Susan Dell Foundation. Some others among our early investors have partially divested their stakes in this round.
The new investors in this round include CDC Group, NewQuest Asia Investments II Limited, Alena Private Limited, CX Partners Fund I, Bajaj Holdings & Investment Limited and AAJV Investment Trust while existing investors such as International Finance Corporation and Elevar Equity Mauritius increased their stakes in the company.
With a successful track record of 10 years, Ujjivan completed its Pre-IPO and IPO during February 2016 and May 2016 respectively. Ujjivan filed its DRHP on December 31st, 2015 to raise upto Rs 650 crore through a fresh issue of equity shares including a portion for the pre-ipo placement; and offer for sale upto 24,968,332 equity shares by existing shareholders. The issue was designed in such a way that post IPO foreign shareholding of the company reduces to below 49 per cent.
The investors who chose to sell part/full of their holdings in Ujjivan include Elevar Equity, International Finance Corporation, International Financial Inclusion Fund, Mauritius Unitus Corporation, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V., Sarva Capital, WCP Holdings and WWB Capital Partners, L.P.
Ujjivan closed the Pre-IPO placement to the tune of 14,236,057 equity shares for cash at a price of Rs. 205 per share aggregating to Rs. 291.84 crore by the first week of February 2016 - a month after filing of the DRHP. The major Investors who participated in the Pre-IPO round include HDFC Standard Life Insurance, Sundaram Mutual Fund, Shriram Life Insuance Company and Desai Bros.
Ujjivan opened the initial public issue on April 28, 2016 and closed the issue on May 2, 2016 with the pricing of the issue at Rs. 210 per share. The IPO was for 42,023,609 equity shares aggregating to Rs 882.50 crore, comprising of the fresh issue of equity shares of 17,055,277 aggregating to Rs 358.16 crore and the offer for sale of 24,968,332 equity shares aggregating to Rs 524.34 crore.
Ujjivan managed to close the anchor book of 12,607,081 equity shares at a price of Rs 210 per share aggregating to Rs. 264.75 crore with marquee names of the industry including ICICI Prudential Mutual Fund, Birla Mutual Fund, UTI Mutual Fund, Tata Mutual Fund, Birla SunLife Insurance, Sundaram Mutual Fund and others. A total of 17 investors were alloted shares worth Rs. 264 crore.
Ujjivan broke records on the last day of IPO closing, May 2, 2016 when at the close of the day the issue was oversubscribed by over 41 times. The company received 6, 75,000 retail bids for the IPO - one of the highest retail participations recorded for any IPO in the recent past.
Ujjivan Financial Services Limited got listed on the stock exchanges on May 10, 2016. The listing of shares has indeed started a new era for the Ujjivan and all its stakeholders.