Is it good to invest in ujjivan?

Investors should wait till the stock settles around Rs 50-55 levels (a 35-49 percent premium over issue price) because and then continue buying if the counter hits lower levels. “In our view, fair value for buying the stock should be anywhere between Rs 50-55 per share,” Mona Khetan said.

What was the issue price of ujjivan small finance bank?

Ujjivan Small Finance Bank (USFB) Limited IPO Details:

Open Date:	Dec 02 2019
Issue Type:	100\% Book Building
Issue Size:	750 Crores Cr.
Lot Size:	400 Shares
Issue Price:	₹ 36-37 Per Equity Share

Is ujjivan bank safe?

Investing in a fixed deposits with the highest rating of AAA, rated by ICRA and CRISIL, is a reliable investment option. Thus, Ujjivan Small Finance Bank term deposit is safe and secure, as the funds are backed by the government no matter what the current situation of the Bank is.

When did ujjivan start its operations?

Ujjivan Financial Services Limited (UFSL) commenced operations as an NBFC in 2005, with the mission to provide a full range of financial services to the ‘economically active poor’ who were not adequately served by financial institutions.

Who are promoters of ujjivan small finance bank?

Our Promoter, Ujjivan Financial Services Limited (“UFSL”) was granted the in-principle approval to establish a small finance bank (“SFB”), by the RBI, pursuant to its letter dated October 7, 2015.

Is Equitas safe?

Equitas Bank is given a stable rating by CRISIL.

Who owns ujjivan small finance?

Ujjivan Financial ServicesUjjivan Small Finance Bank / Parent organization
Ujjivan Small Finance Bank Limited is an Indian small finance bank based in Bangalore, which commenced operations on 1 February 2017. Ujjivan Financial Services holds an 80 percent stake in the bank.

Is ujjivan small finance bank merged?

The board of Ujjivan Financial Services has approved the amalgamation of the company with its subsidiary, Ujjivan Small Finance Bank, to meet the minimum public shareholding norms of SEBI.

What is reverse merger of banks?

While a merger is usually proposed between equals, a reverse merger is a combination where a smaller company merges into a larger one, or a loss-making company merges into a profitable one. In the case of small finance banks, the holding company is expected to be merged into the subsidiary bank.

Is Equitas an NBFC?

Equitas Small Finance Bank Limited formerly Equitas Finance Limited (EFL) commenced operations as a Small Finance Bank (SFB) on 5 September 2016. Prior to commencement of operations as a bank EFL a wholly owned subsidiary of EHL operated as an NBFC. The bank’s lending business is divided into 5 segments viz.

What will happen to Ujjivan Financial’s stake in post IPO?

Post IPO, parent Ujjivan Financial’s stake in the bank will contract to 83.3\%, assuming price discovery at upper end, from current 94.4\%. While promoter’s shareholding of minimum 40\% is locked in till 31-1-22, it is also required to trim promoter holding to 40\% by 31-1-22, to 30\% by 31-1-27 and to 26\% by 31-1-29.

Is Ujjivan SFB’s PE multiple too low?

PE multiple for current year for Ujjivan SFB is the lowest in the above table, while FY20E PBV multiple of 2.1x is also the lowest, except for Equitas Holdings, which has a concentrated portfolio, high bad loans and is a holding company for its small finance bank.

How Ujjivan SFB raised Rs 250 crore in pre-IPO round?

In mid-Nov 2019, Ujjivan SFB raised Rs. 250 crore in a pre-IPO round of 4.7\% of fresh equity, at Rs 35 per share, from funds of IIFL, Avendus, Enam among others. Post IPO, parent Ujjivan Financial’s stake in the bank will contract to 83.3\%, assuming price discovery at upper end, from current 94.4\%.

How many customers does Ujjivan SFB serve?

Currently, Ujjivan SFB serves 4.9 million customers from its network of 552 banking outlets and 441 ATMs, across 24 states/union territories, with focus on South and East India.