Ujjivan SFB seeks shareholders' nod to raise ₹600 cr
Premium- Ujjivan SFB said its board in a meeting held earlier this month evaluated various methods to achieve the MPS by reducing USFL's holding in the bank from the present 83.32% to 75% or lower.
Ujjivan Small Finance Bank (SFB) on Wednesday said it will seek shareholders' approval to raise up to ₹600 crore as equity capital by issuing shares to qualified institutional buyers in order to meet the regulatory requirements for amalgamation with its parent company.
"The Bank is seeking the approval of its members for the following special businesses as set out in the notice of Postal Ballot ("Notice") dated February 21, 2022 to consider and approve raising of funds and issuance of securities upto Rs. 600 crores through Qualified Institutions Placement (QIP) basis or through any other permissible mode, in one or more tranches," Ujjivan SFB said in a filing
On Wednesday, Ujjivan SFB shares closed 0.88% higher at ₹17.10 apiece on NSE.
The lenders will also seek shareholders nod for appointment of Sudha Suresh as an independent director of the Bank effective from 01 April.
She was appointed as a Director (Non-executive, Non-Independent) from August 20, 2021 for three years.
An amalgamation scheme between the bank and its promoter Ujjivan Financial Services Ltd (USFL) was passed by their respective boards of directors, shareholders and creditors in October 2021.
The bank has already sought Sebi nod for a scheme of amalgamation to achieve the Minimum Public Shareholding (MPS).
Ujjivan SFB said its board in a meeting held earlier this month evaluated various methods to achieve the MPS by reducing USFL's holding in the bank from the present 83.32% to 75% or lower.
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"After deliberations, the board approved the option to carry out a Qualified Institutions Placement (QIP) in terms of the SEBI ICDR Regulations to the extent necessary to achieve the MPS norms, provided the total issue proceeds shall not exceed ₹600 crore," Ujjivan SFB said in the filing.
The bank said it is in a growth trajectory with increasing credit demand in the economy.
"The aforesaid issuance of capital would enable the bank to take appropriate advantage of this growth opportunity. The issue/allotment of equity shares may be consummated in one or more tranches at such time or times and at such price, whether at a discount or premium to market price," it added.
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