Ujjivan Financial files prospectus for small finance bank IPO, stock plunges 8%

Shares of Ujjivan Financial Services fell nearly 8 percent on Monday after the company filed a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) to list its subsidiary Ujjivan Small Finance Bank (USFB). The stock fell as much as 7.8 percent to Rs 261.70 per share on BSE. At 9:25 am, the stock was trading 4.4 percent lower at Rs 271.7 compared with 0.63 percent (236 points) gain in BSE Sensex at 37,586. USFB plans to launch an initial public offering (IPO) at a face value…

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Ujjivan Small Finance Bank files Rs 1,200 cr IPO papers

Ujjivan Small Finance Bank is planning an initial public offering to raise Rs 1,200 crore. The company on August 16 filed a draft red herring prospectus with SEBI. “Ujjivan Small Finance Bank is proposing to undertake an initial public offering of equity shares of face value of Rs 10 each, comprising a fresh issue of equity shares by bank aggregating up to around Rs 1,200 crore,” Ujjivan Financial Services said in its BSE filing. The price band for public issue may be determined by bank in consultation with the book running lead managers…

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AU Small Finance Bank gains as Edelweiss initiates coverage, sees 24% upside

Edelweiss Securities has initiated coverage on AU Small Finance Bank with a buy rating and target price of Rs 880 apiece, implying 24 percent potential upside from current levels. At 0916 hours IST, it was quoting at Rs 712, up Rs 3.85, or 0.54 percent on the BSE. The non-banking finance company continues to deliver high loan growth without any asset quality incident and 30 percent-plus asset CAGR remains plausible for an extended period, the brokerage said. It feels operating and financial leverage will continue to play through and return on average…

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Draft norms for ‘on-tap’ licensing of small finance banks by August end

On-tap licensing is a time-efficient feature that will allow parties to obtain the licence on-demand basis and eligible parties won’t have to wait. The Reserve Bank of India (RBI) will issue draft guidelines for ‘on-tap’ licensing of Small Finance Banks (SFB) by the end of August 2019 with a view to enhance supply of credit to small borrowers and encourage competition. On-tap licensing is a time-efficient feature that will allow parties to obtain the licence on-demand basis and eligible parties won’t have to wait. In September 2015, the RBI had…

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AU Small Finance Bank’s profit up 42% in March quarter

MUMBAI: AU Small Finance Bank’s profit grew 42 per cent to Rs 118 crore in the March quarter led by a 50 per cent growth in loans for vehicle purchases. Net Interest Income the difference between what it paid for funds and what it earned from lending, nearly to Rs 851 crore from Rs 464 crore. “Capital raise, stable asset quality, adequate liquidity, continued growth momentum and uptick in yields, cost to income and return ratios were key highlights of the fiscal,” said Sanjay Agarwal, CEO, AU Small Finance. The credit growth was driven by strong…

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Small finance banks start on a strong wicket: ICRA

Mumbai: Rating agency ICRANSE 3.23 % expects small finance banks (SFBs) to grow at a compounded annual growth rate of 25% to 30% led by diversified loan growth, deposit mobilisation, improving asset quality and better return on equity. The rating agency estimates that SFBs would require external capital of Rs. 4,000-6,000 crore till FY2023 for meeting the growth requirements, part of which will come through IPOs. ICRA estimates that SFBs have reported an annualised growth of 33% in the assets under management (AUM) in 9M FY2019 to Rs. 64,325 crore. These banks have been able…

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85% of Small Business Owners Say They’re Living the Dream

“The American Dream” is a concept that can vary from person to person and seem almost impossible to really achieve. However, the vast majority of small business owners seem to feel that they’ve already reached that lofty goal. American Dream Statistics According to recent findings from Kabbage, a financial services and data platform, 85 percent of small business owners believe that being your own boss and owning a business is achieving the American Dream. In addition, 84 percent said they hope their children will also one day become small business owners. The…

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Reactions Mixed on Trump’s Trade Assistance for Small Agriculture Businesses

The result of the tariff war between the US and several countries around the world is having a real-world economic impact on farmers. The Trump administration is looking to alleviate this hardship with a $12 billion package of agricultural assistance as temporary relief. The response to this bailout has been mixed as farmers and lawmakers look to find a quick solution to the trade war. For his part, President Trump asked farmers for a little more patience during a speech at the Veterans of Foreign Wars national convention in Kansas…

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How Technology Can Save Your Small Business Big Money

If you own a small business, you know how important it is to keep costs down and profits up. In fact, experts say that over 80% of small businesses that fail do so because they suffer from problems with their cash flow. No matter how great your business idea is, if you can’t fund it, it won’t succeed in the market. Luckily, there are ways that you can use technology to increase your chances of success and protect yourself from some of the common problems that small business owners have.…

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Blockchain Investment Services: What Small Business Owners Should Know

All economies are built on the basic premise of bartering. Before the creation of currencies, humans exchanged goods by trading one good (or a basket of goods) for another. If someone wanted some of his neighbor’s catch from the day, perhaps he would trade three shucks of corn from his field for one fish–thus initiating a trade. As society advanced, humans began to use precious metals to assign value to objects. No longer did people trade three shucks of corn for a fish–no, now they had to give the fisherman…

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