Ujjivan Small Finance Bank Seeks Shareholders' Nod To Raise Rs 600 Cr
Ujjivan Small Finance Bank (SFB) on Wednesday said it will seek shareholders' approval to raise up to Rs 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.
Besides, the lender will seek approval of shareholders for appointment and re-categorisation of Sudha Suresh as an Independent Director of the bank from the next fiscal year, according to a regulatory filing.
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 per cent to 75 per cent or lower.
"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 Rs 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.
(PTI)
