Ujjivan Small Finance Bank’s board approves a preferential issue of up to ₹409 crore, led by IFC

Ujjivan Small Finance Bank Limited has told the exchanges that its board, at a meeting on 16 Oct 2026, approved a preferential issue of up to 6,31,91,619 equity shares of face value ₹10 each. The shares are priced at ₹64.73 each, including a premium of ₹54.73, for a total of up to about ₹409.04 crore, on a private placement basis. The issue is subject to approval by the bank’s members.

There are four proposed allottees, and the filing says all are qualified institutional buyers. International Finance Corporation (IFC) is to receive up to 3,84,73,561 shares for about ₹249.04 crore. Bajaj Life Insurance Limited is to receive up to 92,69,272 shares for about ₹60 crore. Aditya Birla Sun Life Insurance Company Limited and HDFC Life Insurance Company Limited are each to receive up to 77,24,393 shares for about ₹50 crore each.

The board also approved executing a subscription agreement between the bank and IFC, and a policy agreement under which the bank agrees to comply with certain customary provisions that IFC, as a multilateral development finance institution, requires from the companies it invests in.

The relevant date for fixing the minimum price is 14 Oct 2026, which is 30 days before the Extra Ordinary General Meeting (EGM) of members scheduled for 13 Nov 2026. The preferential issue is to be considered at that meeting. The EGM notice, approved by the board on 16 Oct 2026, will be issued to shareholders in due course.

The filing says the issue will follow the Companies Act, 2013 and the SEBI capital issue regulations of 2018. The board meeting began at 11:00 AM and the items were approved at 12:30 PM. The bank had given prior notice of the meeting on 13 Oct 2026.

Inference

The filing describes a proposed raise of up to ₹409.04 crore. If it is completed, the bank’s capital would rise, and the issue would add up to 6,31,91,619 new shares. Existing shareholders would own a smaller percentage of the enlarged share count, though the added capital would strengthen the bank’s capital base.

The issue is not final: it needs approval from the bank’s members at the EGM scheduled for 13 Nov 2026. The allottees are institutional investors, including a development finance institution, IFC, which is also to enter a policy agreement with the bank. Shareholders may want to follow the EGM outcome and the terms in the notice when it is issued.