Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
IPO News

| More

Subscribe to Ujjivan Small Finance Bank IPO - Angel Broking

Posted On: 2019-11-30 17:10:28

Ujjivan Small Finance Bank (USFB) is a mass market focused SFB in India, catering to unserved and underserved population segments of the country. USFB is well diversified with presence across 24 states and union territories and is catering to over 4.94 million customers as on September 30, 2019. USFB is involved in (i) loans to micro banking customers, (ii) agriculture & allied loans, (iii) MSE loans, (iv) Affordable housing loans, (v) financial institutions group loans, (vi) Personal loans, and (vii) vehicle loans.

Healthy AUM growth with calibrated geographic diversification: USFB's AUM grew at impressive CAGR of 32% over FY2017-19. In 2017, when USFB started operation as SFB, its majority portfolio (97.5%) was concentrated towards micro finance. However, as of Q2FY2020 it contributes 79.2% and other major contributors are Affordable housing (9.4%) and SME (6.5%). Since Feb 2017, USFB has added 100 branches, Tamilnadu formed 16.5% of advances and the top two states (Tamilnadu+ Kerela) contribute 32% of advances, which is among the lowest. To leverage existing client base and network further it has extended loans to the two wheeler and electric three wheelers.

Asset quality improvement continues: Post demonetisation USFB's GNPA rose to 6.23%, however management has been able to reduce it to 0.9% in Q2FY2020. Bank has been maintaining one of the highest provision coverage ratios (67%), which is a positive. However, there is some issue in few areas of Assam, but USFB's exposure to Assam is 3.7% and AUM in concerned area is minuscule.

Improving liability profile: Within 3 years of operation, USFB has been able to improve funding mix towards deposit and CASA ratio of 12%. In FY2017, out of total borrowing, only 3% was sourced through term deposit and reached to 76% in Q2FY2020. However, it has only garnered 41% of deposits from retail. To mobilize retail deposits, USFB is offering higher term deposit rate.

Outlook & Valuation: At the upper end of the price band, USFB is valued at 2.8x its Q2FY2020 book value (Pre-IPO) and on post dilution basis at 2.3x of BV, which we believe is attractive considering similar businesses are trading at higher valuations. Moreover, experienced management, Pan-India presence, and pristine asset quality provides comfort. We recommend a Subscribe to the issue.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Ujjivan SFB's IPO to open on Monday, December 02, 2019 with Price Band of Rs 36 - 37 per Equity Share each of Face Value of Rs 10 each

IRCTC shares to list on Monday - October 14, 2019

IRCTC'S IPO to open on Monday, September 30, 2019 with Price Band of Rs. 315 - Rs. 320 per share

Alpahlogic Techsys IPO oversubscribed 1.18 times on the final day of bidding

Alphalogic Techsys IPO receives overwhelming response, oversubscribed on second day of bidding

Start-up IPO Alpahlogic Techsys subscribed 64% On the First day of bidding

India's First Start-up IPO Opens today

Alphalogic Techsys IPO now to open in Aug 26th, 2019

Alphalogic Techsys Limited IPO to open on August 23, 2019

Alphalogic Techsys Limited to be the First Company to be Listed on BSE Startup Platform

Ujjivan Small Finance Bank Ltd files DRHP with SEBI for IPO

Global solar EPC major Sterling and Wilson Solar's Rs 3,125 cr IPO opens on August 6, 2019

Tamil Nadu - based Annai Infra Developers Ltd. gets SEBI approval to float IPO

Maharashtra Finance Minister Unveils DRHP of Alphalogic Techsys Limited for Rolling Out its IPO

K.P.R. Agrochem IPO withdrawn: Angel Broking

Shyam Steel Industries Limited files DRHP for IPO

White Organic Retail Ltd IPO opens on BSE SME platform

TN-based Annai Infra Developers Limited files document for IPO float

Rail Vikas Nigam Limited's IPO to open on Friday, March 29, 2019

Humming Bird Education IPO fully subscribed

Humming Bird Education IPO Opens on March 15

MSTC Limited's IPO to open on Wednesday, March 13, 2019

Anmol India Ltd IPO fully subscribed on Day 3

KPI Global Infrastructure's Rs. 40 crore mops subscription of Rs. 436 Crore

Initial Public Offer: Garden Reach Shipbuilders & Engineers - Kotak

Initial Public Offer: Dinesh Engineers Ltd - Kotak

Subscription for Kritika Wires Ltd IPO open

Garden Reach Shipbuilders & Engineers Ltd IPO extended, price band revised

IPO of Spectrum Electrical Industries Limited Opens on September 17, 2018

Ahlada Engineers IPO opens for subscription on Sep 11, 2018

Rajshree Polypack Ltd NSE SME IPO to open for subscription on Sep 10, 2018

Marquee investor, Sunil Singhania's Abakkus Growth Fund - 1 invests in Rajshree Polypack Limited as Anchor Investor

Equity shares of CreditAccess Grameen Limited to list on Aug 23, 2018

TCNS Clothing Company Ltd to list on July 30, 2018

HDFC AMC IPO receives subscription of 83.04 times

HDFC Asset Management Co - IPO Note - Angel Broking

TCNS Clothing Company Limited - IPO Note - Angel Broking

Rajnish Wellness Ltd IPO to hit markets on June 25, 2018

Varroc Engineering Limited IPO to open for subscription on June 26, 2018

RITES Limited IPO receives overwhelming response from investors

Fine Organic Industries Limited IPO receives subscription of 8.99 times

Varroc Engineering Ltd - IPO Note - Angel Broking

RITES Ltd - IPO Note - Angel Broking

Fine Organic Industries Ltd - IPO Note - Angel Broking

Avana Logistek Ltd files DRHP with SEBI for IPO

IndoStar Capital Finance Ltd - IPO Note - Angel Broking

IndoStar Capital Finance Limited Offer opens on May 9, 2018

IPO Note - SoftTech Engineers Ltd - Arihant Capital Markets Ltd

Hindustan Aeronautics Ltd to list on March 28, 2018

Expectations high on listing of Bandhan Bank shares tomorrow







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019