{LONGTERMINVESTORS} IPo Note_UJJIVAN FINANCIAL SERVICES LTD.

UJJIVAN FINANCIAL SERVICES LTD.

Name of Issuing Company: UJJIVAN FINANCIAL SERVICES LTD. Lower Price Band (Rs.): 207 Higher Price Band (Rs.): 210 Issue Start Date: 28 Apr 2016 Issue End Date: 02 May 2016 Lot Size: 70

ABOUT ISSUE: ISSUE DETAILS ISSUE HIGHLIGHTS OFFER STRUCTURE ISSUE BREAKUP Reservation for % of Issue Rs. In Crs. Price Band: Rs. 207 to Rs. 210 Issue Size :      Rs. 882.5 Cr. Issuance No. of Shares      (In Cr.) QIB 50 441.25 Issue Open on:   April 28,2016 Issue Closes on:  May 2,2016 No of Shares:   4,23,00,000 Fresh Issue 1.7 Non-Institutional 15 132.38 Offer for Sale 2.5 Lot Size: 70 Shares Face Value :              Rs.10 Net Offer 4.2 Retail 35 308.88

ABOUT COMPANY: COMPANY OVERVIEW Incorporated in 2005, Ujjivan Financial Services Ltd. is an Indian microfinance services company primarily based on the joint liability group lending model for providing collateral free, small ticket-size loans to economically active poor women. It also offers individual loans to Micro & Small Enterprises ("MSEs"). They offers group loans and individual loan as per their customer requirements. In addition to loan products, they also provide non-credit offerings comprising of life insurance products, in partnership with insurance providers such as Baja Allianz Life Insurance, Kotak Mahindra Life Insurance, and HDFC Life Insurance Company Ltd. HIGHLIGHTS Ujjivan Financial operations are spread across 24 states and union territories, and 209 districts across India, making us the largest MFI in terms of geographical spread.  It serves over 2.77 million active customers through 470 branches and 7,786 employees. As of December 2015 Ujjivan's gross assets under management (AUM) stood at INR45.89 billion. The company had approximately 11.15% of market share of the NBFC-MFI (Non-Banking Financial Company- Micro Finance Institution) business in India as of 30 September 2015. Objects of the issue 1. Augmenting capital base to meet future capital requirements; 2. General corporate purpose.

OUTLOOK: The company's revenue growth is at CAGR 40% in last 5 years. Getting the SFB license will likely to change the dynamics of the business going forward. Ujjivan Financial Services is an excellent managed company which has managed to quickly turnaround its banking business. The growth has been commendable with very strong operating efficiencies however the return ratios are yet to improve. At a price of 210 the company is commanding a P/E of 17.5 which is quite reasonable. Professional management, experienced leadership and strong corporate governance will help the company to expand its reach, brand image and provide additional financial services and so is likely to enjoy premium over its peers.

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