Ujjivan SFB's board approves a ₹409 crore share issue after Q2 profit of ₹365 crore

What happened

• The board approved a preferential issue of 6,31,91,619 equity shares at ₹64.73 each to raise ₹409.04 crore, according to Sahi. The allottees are the International Finance Corporation, Bajaj Life Insurance, Aditya Birla Sun Life Insurance and HDFC Life Insurance. Shareholders vote at an extraordinary general meeting on 13 November.
• HDFC Sky reported a September-quarter net profit of ₹365 crore, nearly three times the ₹122 crore of a year earlier. Total income rose 26% to ₹2,449 crore from ₹1,939 crore.
• Provisions for bad loans fell to ₹103 crore from ₹235 crore, and the gross loan book rose 32.1% to ₹45,699 crore, with the secured share at 52.1%, HDFC Sky said.
• The shares closed at ₹63.55 on Kite data, down 1.47% from ₹64.50.

Why it matters

Good to know: In a preferential issue, a company issues shares to chosen investors at a price it sets within regulatory rules, rather than offering them to all shareholders. It needs shareholder approval.

Key facts

Issue size

₹409.04 crore: 6,31,91,619 shares at ₹64.73

Allottees

IFC, Bajaj Life, Aditya Birla Sun Life, HDFC Life

Shareholder vote

Extraordinary general meeting on 13 November

Q2 net profit

₹365 crore (₹122 crore a year earlier)

Read the source

• Ujjivan Small Finance Bank Approves Share Issue To Raise ₹409.04 CroreSahi
• Ujjivan SFB Q2 Profit Jumps Nearly 3x to ₹365 CroreHDFC Sky
• Ujjivan Small Finance Bank Approves Rs 409 Crore Preferential Equity IssueWhalesbook