Bangalore-based MFI, Ujjivan has raised Rs.45 Cr ($10 Mn) by way of private placement of NCDs.
The amount raised will be used to fund its credit growth and also for its expansion plans.
Standard Chartered Bank is the sole book runner and lead arranger to the issue and the NCD is listed on BSE.
Transaction Reference: Microfinance Focus
Ujjivan Financial Services Private Limited, a microfinance institution (MFI), started operations in Bangalore in November 2005 under the guidance of Grameen Bank of Bangladesh.
It provides non-financial microfinance plus services through its partner NGO, Parinaam.
Ujjivan operates across 18 states in India with 303 branches serving over 750,000 poor urban customers.
Its 75% of the loans are used for business and the rest are used for varied purposes like housing, education, healthcare and emergencies.
Private Equity Investors in Ujjivan Financial Services include Unitus Equity Fund (UEF), Bellwether Microfinance Fund, Michael & Susan Dell Foundation, A.W. Holdings, Sequoia Capital, Lok Capital, Elevar Equity, India Financial Inclusion Fund and SIDBI.
It is also planning for an IPO in 2012-13.
As on March 31, 2010, Ujjivan wiped out cumulative losses of about Rs.5.85 Cr of the first four years of start-up operations and posted its first year of profitable operations with a post-tax profit of Rs.9.63 Cr after transferring Rs.1.93 Cr to the statutory reserve fund as per RBI guidelines. It has a CAR of 27%.
For past few months, many MFI's have raised funds to fund their credit growth. SKS Microfinance raised $358 Mn through IPO after pricing the issue at Rs.985 per share; Swadhaar FinServe Pvt Ltd also raised Rs.27.5 Cr from Microvest and from its existing investors and Fusion Microfinance raised Rs.4.5 Cr from Incofin Investment.
Grameen Koota is also planning to raise Rs.100 Cr to fund its credit growth and also for an initial capital to set up a micro-housing subsidiary.
Tags
Ujjivan Financial Services Private Limited ,
Standard Chartered Bank ,
Parinaam ,
MFI ,
Unitus Equity Fund (UEF) ,
Bellwether Microfinance Fund ,
Michael & Susan Dell Foundation ,
A.W. Holdings ,
Sequoia Capital ,
Lok Capital ,
Elevar Equity ,
India Financial ,
SIDBI ,
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 01/02/12 |
Ujjivan Financial Services - Fund Raising |
Private Equity |
Sequoia Capital India |
25.75 |
| 19/09/11 |
Ujjivan Financial Services - Fund Raising |
Private Equity |
|
20.92 |
| 13/03/09 |
Ujjivan Financial - India Financial Inclusion, Others - Round 4- Tranche II |
Private Equity |
Unitus Equity Fund II |
6.42 |
| 10/12/08 |
Ujjivan Financial - Bellwether Microfinance - Round 4- Tranche I |
Private Equity |
Unitus Equity Fund II |
10.53 |
| 31/10/07 |
Ujjivan Financial - Bellwether Microfinance - Round 3 |
Private Equity |
Unitus Equity Fund |
- |
| 17/05/06 |
Ujjivan Financial - Michael and Susan - Round II |
Private Equity |
Michael and Susan Dell Foundation |
0.45 |
| 17/08/05 |
Ujjivan Financial - Bellwether Microfinance Fund - Round I |
Venture Capital |
Bellwether Microfinance Fund |
0.16 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 01/02/12 |
Private Equity |
Sequoia Capital India |
Ujjivan Financial Services Private Limited |
25.75 |
Completed |
| 23/01/12 |
M&A |
Singhivi Investment and Finance Private Limited |
Microfinance Business |
- |
Announced |
| 12/10/11 |
Private Equity |
Helion Venture Partners |
Spandana Sphoorty Financial Limited |
1.37 |
Completed |
| 27/09/11 |
Private Equity |
Norwegian Microfinance Initiative |
Utkarsh Micro Finance Private Limited |
5.08 |
Completed |
Company |
| Name | Promoters | Office | Competitor | Website |
| Ujjivan Financial Services Private Limited |
Samit Ghosh |
#93, Jakkasandra Extension, Sarjapur Main Cross Road, 1st Block, Koramangala |
Asirvad Microfinance Private Limited |
www.ujjivan.com |
| UTI Asset Management Co. Limited |
|
UTI Tower, GN BLOCK BAndra Kurla Complex
Bandra (E)
Mumbai
Maharashtra 400051 |
|
www.utimf.com |
