20.2 C

Ujjivan SFB launches QIP at floor price of Rs 21.93 ahead of merger

Must read


Bank (SFB) on Monday launched its (Qualified Institutional Placement) with a floor price of Rs 21.93 per share to meet the regulatory requirement ahead of with its parent company.

In February this year, the lender had informed raising of up to Rs 600 crore by issuing shares to qualified institutional buyers in order to meet the regulatory requirements for amalgamation with its parent firm Ujjivan Financial Services.

The and Placement Committee of the board has, at its meeting held on September 12, 2022, passed resolutions for authorising the opening of the issue today and approved the floor price for the issue at Rs 21.93 per equity share, Ujjivan SFB said in a regulatory filing.

Floor price refers to the minimum price in a share issuance programme.

Ujjivan SFB said a meeting of the and Placement Committee of the board is scheduled to be held on September 15, 2022 to consider and approve the issue price, including any discount.

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 had said its board evaluated various methods to achieve the MPS by reducing USFL’s holding in the bank from the present 83.32 per cent to 75 per cent or lower.

As per RBI guidelines on small banks, it is mandatory for the promoter to reduce the stake in the subsidiary to 40 per cent within five years of commencement of operations by the SFB.

Ujjivan SFB commenced operations in February 2017.

Stock of Ujjivan SFB closed at Rs 25.30 apiece on BSE, up by 5.42 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Source link

- Advertisement -spot_img

More articles


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article