Creador affiliate buys 5% stake in Ujjivan

PETALING JAYA: An affiliate of Creador III LP, Ardisia Ltd has invested Rs 215 crores (RM138.2mil) for a 5% stake in public-listed Ujjivan Financial Services Ltd (Ujjivan).

This marks the 28th investment for Creador, a private equity firm focused on long-term investments in growth-oriented businesses in South East Asia and India.

Ujjivan, the holding company of Ujjivan Small Finance Bank, provides loan and savings products to the unserved and underserved population.

Incorporated in 2004, Ujjivan serves 3.7 million customers through its network of 445 branches across 24 states and union territories.

In a statement, Creador noted that Ujjivan had demonstrated strong financial track record, with assets under management growing by nine times between 2012 and 2017 to Rs 64bil (RM4.1bil), and return on assets and return on equity averaging at 3.0% and 15% respectively.

“In 2015, Ujjivan received an in-principle approval to convert into a Small Finance Bank, which enables it to provide both credit and savings products to its clients.

“After launch of its banking operations in February 2017, it has completed its initial transformation of systems and processes and has already rolled out 100+ banking branches,” Creador said in the statement.

Over the next two years, Ujjivan is expected to convert its entire network of 445 branches into full-service banking branches.