CDC completes exit from India’s Ujjivan

CDC sold 2.3 million shares in Ujjivan in open market transactions for INR405 each this week. This follows the sale of 5.9 million shares in August and 2.75 million shares in May, accounting for all 10.9 million shares that it held as of March 2017, according to Ujjivan’s most recent annual report.

Ujjivan was founded in 2005 as a microfinance institution targeting Indian urban and semi-urban poor customers and received approval from the Reserve Bank of India in 2015 to launch a small finance bank, allowing it to perform basic banking services such as acceptance of deposits and lending.

CDC invested in 2015, joining CX Partners, NewQuest Capital Partners, Bajaj Holdings, International Finance Corporation (IFC) and Elevar Equity in a combined commitment of $96 million.

Ujjivan raised INR8.9 billion in its 2016 IPO, selling shares at INR210 apiece. Several PE investors made full exits in the offering, including Netherlands development finance institution FMO, Women’s World Banking Capital Partners, Wolfensohn Capital partners, and Unitus Capital. Elevar, IFC and Sarva Capital made partial exits, while CDC retained its holding, which was diluted from 12% to 10% in the IPO.

As of March 2017, IFC, NewQuest and Alena Private still held stakes of 6%, 5.9%, and 9% respectively. The stock price has appreciated considerably since the IPO, standing at INR407 at the close of trading on January 10.

For the year ended March 2017, Ujjivan’s revenue came to INR237 million, up from INR176 million the year before. Over the same period, net profit grew from INR108 million to INR145 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Financials
• Open market
• India
• CDC Group
• Financial Services