00:00 Ujjivan Small Finance Bank, the stock has been up over 12% in the past month and this
00:04 is in the backdrop of its announcement for the reverse merger with its holding company
00:08 Ujjivan Financial Services.
00:10 The bank first announced its reverse merger in October 2021 and the NCLT recently issued
00:15 a directive to convene an extraordinary general meeting on November 3.
00:20 The company expects the reverse merger to be complete by March 2024 and the swap ratio
00:26 is such that for every 10 shares in the holding company, shareholders will receive 116 shares
00:32 of Ujjivan Small Finance Bank.
00:34 The holding company owns 73.68% in the bank currently.
00:39 The company, the bank as in, reported the highest ever quarterly profit of 324 crores
00:44 in Q1 FY24 despite being seasonally weak and the loan book also crossed 25,000 crores and
00:51 has shown a track record of over 30% annual growth in the previous fiscals.
00:55 The housing and financial institutional groups disbursements have also shown strong momentum.
01:00 The capital adequacy ratio with a tier 1 capital at 23.7 also exhibits a robust financial position
01:07 for the company.
01:08 MK recommends a buy target with a target price of 58 which implies a 7% upside as of Friday's
01:14 close.
01:15 For more such updates stay tuned to BQ Prime.
01:16 [music]
01:21 you
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