Intrinsic Value

Returns vs FD rates

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry Point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

ESAF Small Finance Bank has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI to launch Rs 998-crore IPO.

ESAF Small Finance Bank files Rs 998-cr IPO papers with SEBI; will join Ujjivan SFB, Equitas SFB upon listing

Ujjivan Small Finance Bank - Probable Reverse Merger Positive For Ujjivan Financial Services: Centrum Broking

Picture this, the data revealed that small finance banks like AU Small Finance Bank, Equitas Small Finance Bank and Ujjivan Small Finance Bank were providing interest rates up to 7%. Besides that the DCB bank offered up to 6.75% interest rate, followed by RBL Bank (6.25%) and Bandhan Bank (6%).

Bank Fixed Deposits: THESE banks offer up to 7% return, here’s how it is better than HDFC, Kotak and more

The stock of Equitas and Ujjivan holding companies along with their respective Small finance banks surged in trade as the Reserve Bank of India permitted small finance banks and respective holding companies to apply for the
amalgamation of holding company with small finance bank. This has to be done (Three) months prior to
completing five years from the date of commencement of business of small finance bank. The merger is subject to RBI’s  No-Objection  based on satisfactory due diligence. Both Ujjivan and Equitas have stated that they would be initiating necessary steps for amalgamation of their respective holding companies with their respective Small Finance banks.
 
The development is positive for holding companies as the discount will narrow and the promoter (in this case the holding companies) will not have to dilute stake to below 40%. Instead they can directly apply for reverse merger with the bank itself.
 
Speaking exclusive to ET NOW, Samit Ghosh, Founder, Ujjivan Small Finance Bank & Chairman of Ujjivan Financial Services said, Ujjivan Financial Services holds 83% of the Ujjivan Small finance bank, RBI has permitted that holding company can reverse merge with the bank and he is glad that RBI has given this nod. Earlier the holding Co would get 40-50% discount, now this discount will narrow. Earlier shareholding of holding co/promoter was required to come down from 40% but now this will not be needed. He said Ujjivan Financial Services will apply (for merger of Holding Co with the small finance bank) by late Oct or early Nov to RBI and the whole legal process (NCLT approval, etc) will possibly take about 18 months.
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Equitas and Ujjivan soared in trade; RBI allows merger of holding Cos with small finance banks

Equitas Holdings has 82% stake in Equitas SFB and the initial promoter lock-in for five years expires on 4 September 2021. Ujjivan Financial holds 83.3% in Ujjivan SFB and the initial promoter lock-in expires on 31 January 2022

Equitas, Ujjivan shares rally on hopes of RBI nod for merger with SFBs

RBI has given nod to SFBs & respective holding companies to apply for mergers - how positive is this development. What is the investor feedback to this development  - do you see the holding company discount to narrow? Your press release says Ujjivan SFB will be applying for the merger -- When do you see the merger process be completed? Post the merger which entity would remain listed? Q1 update showed slower disbursements -is the management being risk-averse or has the demand being impacted? Has collection efficiency improved in June and July so far? Which states are showing better trends? Watch the full interview with Samit Ghosh, Founder, Ujjivan Small Finance Bank & Chairman of Ujjivan Financial Services on The Market!
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Times Now  : http://goo.gl/U9ibPb
The NewsHour Debate : http://goo.gl/LfNgFF

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Rationale For SFB-Holdco Merger | Samit Ghosh, Ujjivan Small Finance Bank | The Market

LIC’s holding in IDBI Bank would be sold along with the government’s stake in the lender’s disinvestment, but the exact quantum of stake dilution is yet to be decided, the Department of Investment and Public Asset Management (DIPAM) has said

Stocks to Watch: Avenue Supermarts, IDBI Bank, Equitas, Ujjivan SFB

Upma Goel has mentioned in her resignation letter that she is resigning to pursue her professional aspirations outside the Bank.

Upma Goel steps down as Chief Financial Officer of Ujjivan Small Finance Bank

Ujjivan Small Finance Bank rose 2.16% to Rs 30.80 after the bank’s total deposits increased 24% to Rs 13,673 crore in Q1 FY22 from Rs 11,057 crore in Q1 FY21.

Ujjivan Small Finance Bank gains after deposits rise 24% YoY in Q1

The bank said in the regulatory filing that the deposits rose 4% last quarter compared with Rs13,136cr in Q4 FY21.

Ujjivan Small Finance Bank deposits rise 24% yoy in Q1; CASA jumps 77% to Rs2,773cr

High slippage and provision will keep most investors on the sidelines, risk-takers should start looking at the stock of Ujjivan SFB, which is now available at a huge discount to its IPO valuation

Can The Waning Impact Of Second Wave Help Ujjivan SFB Re-rate?

Ujjivan Small Finance Bank is a commercial bank specializing in catering to unserved and underserved segments.

Ujjivan Small Finance Bank Ltd

Ujjivan Small Finance Bank Ltd

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

ESAF Small Finance Bank files Rs 998-cr IPO papers with SEBI; will join Ujjivan SFB, Equitas SFB upon listing

Ujjivan Small Finance Bank - Probable Reverse Merger Positive For Ujjivan Financial Services: Centrum Broking

Bank Fixed Deposits: THESE banks offer up to 7% return, here’s how it is better than HDFC, Kotak and more

News Video

Equitas and Ujjivan soared in trade; RBI allows merger of holding Cos with small finance banks

Equitas, Ujjivan shares rally on hopes of RBI nod for merger with SFBs

News Video

Rationale For SFB-Holdco Merger | Samit Ghosh, Ujjivan Small Finance Bank | The Market

Stocks to Watch: Avenue Supermarts, IDBI Bank, Equitas, Ujjivan SFB

Ujjivan Small Finance Bank Ltd

Intrinsic ValueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry PointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

ESAF Small Finance Bank files Rs 998-cr IPO papers with SEBI; will join Ujjivan SFB, Equitas SFB upon listing

Ujjivan Small Finance Bank - Probable Reverse Merger Positive For Ujjivan Financial Services: Centrum Broking

Bank Fixed Deposits: THESE banks offer up to 7% return, here’s how it is better than HDFC, Kotak and more

News Video

Equitas and Ujjivan soared in trade; RBI allows merger of holding Cos with small finance banks

Equitas, Ujjivan shares rally on hopes of RBI nod for merger with SFBs

News Video

Rationale For SFB-Holdco Merger | Samit Ghosh, Ujjivan Small Finance Bank | The Market

Stocks to Watch: Avenue Supermarts, IDBI Bank, Equitas, Ujjivan SFB

Intrinsic Value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

Returns vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's return on equity is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry Point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock