Ujjivan Financial Services slipped almost 6% intra day to Rs.379 on the back of its poor show for Q4Fy17. It has recovered from there but remains firmly in the red at Rs.387 levels currently. Its 52-week low is at Rs.217.05.
Showing the effects of demonetization, the company’s consolidated net profit slipped 56% at Rs.19 crore on a 33% decline in Net Interest Income (NII) at Rs.153 crore.
Its provisions have thankfully come down from Rs.55 crore to Rs.7 crore on a sequential basis.
Bengaluru based Ujjivan Financial is a microfinance company and was amongst the first to receive the nod from RBI to start small finance bank. In fact the purpose of its IPO (April 2016) was to bring down the FII holding to 49% or less to cater to RBI stipulations.
foreign shareholding in the company is to be brought down to 49% or less, by April 6, 2017, and hence existing foreign investors are pruning their holding to ~44%, from current 77.10%, via this IPO.