Overseas firms looking to invest in Ujjivan Small Finance Bank via IPO

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Overseas investment firms such as Elevar Equity Mauritius and NewQuest Asia Investments may be looking to invest in Ujjivan Small Finance BankNSE -3.10 % through its Rs 1,200-crore initial public offering, which is likely before November.

The two are existing investors in Ujjivan Financial Services–the publicly listed holding company of the bank–along with International Finance Corporation and CX Partners.

“Many existing investors of Ujjivan are showing interest in the bank’s IPO,” Ujjivan Small Finance Bank’s managing director Samit Ghosh told ET. “There is fair amount of interest from new investors as well, although there are concerns over governance issues in the BFSI (banking financial services and insurance) sector.”

As per Reserve Bank of India’s mandate, the bank has to be listed by February.

The bank had filed its draft red herring prospectus with market regulator Securities & Exchange Board of India in August this year. Shareholders of Ujjivan Financial Services will get preference to buy shares.

Ghosh said that investors have enquired about the health of the Indian economy, which has slowed, with first-quarter GDP growth falling to 5 per cent, the lowest in 25 quarters. The World B ..

The bank has shown 55 per cent growth in its advances portfolio with stable asset quality.

“We continue to focus on overall cost structure and have retained cost to income ratio within 70 per cent on account of increased top line and strong cost control measures. Asset quality continues to be stable despite multiple states grappling with floods,” Ghosh said.

Gross advances of the bank rose to Rs 12,864 crore while gross non-performing assets ratio improved to 0.9 per cent again

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