On Monday, Ujjivan Small Finance Bank (SFB) launched its Qualified Institutional Placement with a floor price of Rs 21.93 per share. In February, the fund raised to Rs 600 crore by issuing shares to qualified institutional investors buyer to meet the requirements of regulations for amalgamation with the parent company.

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On 12 September 2022, the board meeting was held, and a resolution passed for the issue’s opening and approved the floor price by the Merger and Placement Committee, said Ujjivan SFB. On 15 September 2022, another meeting was scheduled for the approval of the issue price, including a discount as well said by Ujjivan SFB. Floor price refers to the minimum price in the shares issuance programme.

In October of last year, their respective boards of directors, shareholders and creditors passed an amalgamation scheme between the bank and its promoter Ujjivan Financial Services Ltd (USFL). Already the bank has sought for amalgamation scheme to achieve the Minimum Public Shareholding (MPS). Per the company’s statement, the BOD evaluated various methods to achieve the MPS by reducing USFL’s holding in the bank from 83.32 per cent to 75 per cent or lower. As per RBI guidelines on small finance banks, reduce the stake in the subsidiary company to 40 per cent within five years of commencement of operation by SFB. 

In the year 2017, the Ujjivan SFB commenced operation. The stock closed at Rs 25.30 per share on the Bombay Stock Exchange (BSE), rising by 5.42 per cent.