Ujjivan Small Finance Bank approves $43.1M raise as Q2 profit triples
What's the deal? Ujjivan Small Finance BankDealroom has a profile for this one. Try Dealroom →'s board approved a US$55.5M preferential equity raise, backed by the International Finance Corporation, Bajaj Life Insurance, HDFC LifeDealroom has a profile for this one. Try Dealroom → Insurance, and Aditya Birla Sun Life InsuranceDealroom has a profile for this one. Try Dealroom →. The post-IPO round is subject to shareholder approval.
Why now? The capital injection accompanies record Q2 FY27 results for the Indian lender, which the bank said it needs to sustain growth momentum. The issue is priced at a premium to current book value per share, delivering accretion of roughly US$0.01 per share.
By the numbers: Ujjivan posted its highest-ever quarterly profit after tax of US$49.6M, up 200% year on year. Total deposits crossed US$6.88B, up 29.2%, while the gross loan book grew 32.1% to US$6.21B. Return on equity jumped 1,200 basis points to 19.7%.
What's the endgame? The bank is shifting away from unsecured microfinance toward secured lending. Secured loans grew 47% to US$3.23B, now more than half the credit book, with affordable housing crossing US$1.36B and MSME financing up 51.3%.
The signal: The round sits in the smaller tier of equity deals globally, but the investor roster — led by the International Finance Corporation — signals institutional confidence in India's small finance banking sector as lenders diversify into collateralised credit.
Read more: mfnewsdaily.in
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