The private placement is anchored by the International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, alongside three domestic institutional insurance companies.
Finsamudra Desk
Ujjivan SFB Board Approves ₹409 Crore Preferential Issue; IFC Expands Stake to 4.99% Alongside Three Insurers
The Board of Directors of Ujjivan Small Finance Bank Limited has approved a preferential allotment of up to 6,31,91,619 equity shares at an issue price of ₹64.73 per share, aggregating to approximately ₹409.04 crore.
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Deal Architecture and IFC Stake Calibration
The preferential allotment has been structured in compliance with Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, based on a Relevant Date of October 14, 2026:
- Issue Price: Fixed at ₹64.73 per equity share (face value ₹10 each).
- IFC Participation: IFC, which held 6,21,32,650 equity shares (3.18%) as of October 15, 2026, will be allotted up to 3,84,73,561 fresh equity shares (representing ~₹249.04 crore).
- Enlarged Capital Base: Post-allotment, IFC’s aggregate holding will climb to 10,06,06,211 equity shares, representing 4.99% of the bank's expanded paid-up equity capital.
- Co-Investors: Three marquee domestic insurance firms will subscribe to the remaining 2,47,18,058 equity shares (~₹160 crore).
By calibrating IFC’s post-allotment holding at exactly 4.99%, the transaction remains strictly beneath the 5.00% regulatory ceiling that would otherwise necessitate prior statutory clearance from the Reserve Bank of India (RBI).
Why it matters
Policy Agreement and Governance Covenants
Alongside the equity subscription, Ujjivan SFB executed a comprehensive bilateral Policy Agreement with IFC. The agreement mandates adherence to international developmental standards, including:
- Strict Environmental and Social (E&S) management systems across the bank's lending portfolio.
- Anti-corruption covenants, child protection frameworks, and compliance with United Nations Security Council sanctions.
- Information-sharing safeguards ensuring any unpublished price-sensitive information (UPSI) disclosed to IFC is simultaneously disseminated to stock exchanges under SEBI LODR rules.
The transaction remains subject to the approval of shareholders at an Extraordinary General Meeting (EGM) scheduled for November 13, 2026. The capital injection substantially reinforces Ujjivan SFB’s Tier-1 capital ratios to support continued credit expansion across its secured and micro-banking franchises.
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Sources
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