PE-backed Ujjivan Financial Services files for India IPO

The company said in a filing that it wanted to raise up to INR6.5 billion ($97.8 million) through an offer of new shares, although this could be reduced to INR4 billion should there be sufficient demand for a pre-IPO private placement of 22 million shares worth up to INR4.5 billion. In addition, existing investors plan on selling up to 24.9 million shares.

Four existing investors are targeting full exits through the offering: Netherlands development finance institution FMO, which currently holds a 3.13% stake in the company, or 2.69 million shares; Women's World Banking Capital Partners (WWB), with 6.28% or 5.41 million shares; Wolfensohn Capital Partners, which has 3.59% or 3.09 million shares; and Unitus Capital, with 2.93% or 2.52 million shares.

Elevar Equity, a 7.38% stakeholder, wants to sell up to 3.49 million shares, with International Finance Corporation (IFC, 11.84%) looking to offload 3.06 million shares. In addition, India Financial Inclusion Fund (IFIF) and Sarva Capital, which own 4.07% and 6.82%, want to sell 1.75 million shares and 2.94 million shares, respectively.

Other investors in Ujjivan include CDC Group with 12.69%, Alena Private with 12.53%, NewQuest Capital Partners with 9.52%, Lok Capital with 6.82%, Bajaj Holdings with 5.95% and Sequoia Capital with 4.88%. CX Partners and the Michael and Susan Dell Foundation (MSDF) also have interests in the company.

Ujjivan, which started operations in 2005, is one of India's largest MFIs with gross managed assets of INR40.88 billion. As of September 2015, it had operations in 24 states, serving more than 2.6 million customers through 469 branches and 7,786 employees. The company claims to have an approximately 11.15% of India's non-banking finance company-MFI segment. Total revenue for the 2015 financial year came to INR6.12 billion, with net profit of INR757.9 million.

In October of last year, Ujjivan was one of 10 companies to receive approval from the Reserve Bank of India to set up a small finance bank.

AVCJ Research has records of Ujjivan receiving six rounds of funding worth close to $150 million between them. These include a INR921.8 million commitment in 2008 from MSDF, Elevar, IFIF, Unitus, Sarva, Sequoia and other investors; INR472.8 million from IFC and FMO in 2012; and INR5.98 billion in 2015 from CX, IFC, Bajaj, Elevar, Alena, NewQuest and CDC. The latter round saw several early investors make partial exits.

The bookrunners for the offering are Kotak Investment Banking, Axis Capital, ICICI Securities and IIFL.

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• Topics
• Exits
• South Asia
• Financials
• IPO
• Financial Services
• India
• Exit
• Wolfensohn India Advisors
• IFC
• FMO
• CDC Group
• NewQuest Capital Partners
• CX Partners
• Sequoia Capital