Ujjivan Small Finance Bank IPO Details


Incorporated in 2017, Ujjivan Small Finance Bank Limited (USFB) offers small finance to underserved & unserved segments in India. The bank aims to work for the financial inclusion of the country. USFB Bank is promoted by Ujjivan Financial Services Limited (UFSL) which is an NBFC providing financial services to the economically active poor, who are not served by the Financial Institutions.

UFSL offers small size loan products to economically poor women, individual loans to Micro and Small Enterprises (MSEs). It follows the integrated lending approach where the company considers technology infrastructure and back-end support functioning before lending.

USFB has a wide presence across 24 states and union territories in India. As on 30 June 2019, it has 4.72 million customers, 474 Banking Outlets, 387 ATMs, two 24/7 phone banking units (in Bengaluru and Pune) and 50 additionally operated Asset Centres. Customers can use USFB mobile banking application in 5 languages.

Ujjiwan small finance Bank Loan Product

1. Agriculture and allied loans
2. Affordable housing loans
3. Loans to micro banking customers
4. Personal loans
5. Financial institutions group loans
6. Vehicle loans
7. Micro & small enterprises loans

The bank has a diversified portfolio offering savings, current & deposit accounts, Aadhaar enrolment services, ATM-cum-debit cards, point of sales terminals, and distributing 3rd party insurance products. USFB is focussed on digital platform and provides bill payments, SMS banking, mobile banking, RuPay Platinum debit cards, internet banking, biometric ATMs services digitally. The bank also allows registering savings account on UPI based mobile applications. It has an automated tablet-based loan origination system, digitalised credit processing and automated receipt collection system to reduce the turn around time of customers.

Competative strength of Bank:

1. Serving mass-market segment of unserved and underserved
2. Multiple delivery channels
3. Pan-India presence
4. Digitally advanced platform
5. An established risk management framework

What are the object of issue :

USFB proposes to utilize the Net Proceeds from the Issue towards following objects:

1. Augmenting the Bank’s Tier – 1 capital base to meet our Bank’s future capital requirements
2. Meeting the expenses in relation to the Issue
3. Receive the benefits of listing the Equity Shares on the Stock Exchanges

Important Notion:

Pre-IPO Placement of 71,428,570 Equity Shares (Aggregating to ₹250 crore)

Cut off date for shareholder category: 22nd November

Investors Portion: (a) QIB: 75% of the net issue (60% of QIB to Anchor Investors) (b) NII: 15% of the net issue (c) RII: 10% of the net issue

Shareholder category reservation: Rs 75 crore (Rs 35 per equity share)


Now a days we are seeing lot of IPOs are in the news, SBI Cards IPO stands a bit different. On the one hand, it is a capital enhancement opportunity for the company, while on the other hand, it will see India’s biggest ever PE Exit. This piece is about how an SBI owned company bets on its future through this IPO.

What is a credit card?

A credit card is a plastic card issued by financial institutions, which lets you to borrow funds from a pre-approved limit to pay for your purchases. The limit is decided by the institution issuing the card based on your credit score and history. Generally, higher the score and better the history, higher is the limit.

What is SBI credit cards?

One thing we must be clear before everything else, credit cards offered by the banks are different from the banks. If you just want to offer a credit card, you do not necessarily need to be a bank. You may be just another NBFC entity approved by RBI to do so. This is why you can now see some new credit cards coming like ‘flipkart axis bank credit card’ and ‘Amazon Pay Credit Card.’ Hence, they are independent of the bank, technically.

SBI Cards is one of the most prominent players in the Credit Cards business. It owns 18% of market share and is second only to HDFC Cards (27%). Considering a stiff competition from 73 other issuers, SBI Cards market share looks promising. Even its share in total credit card also spends 17.9% of the market share.we should also familiar with the fact that India’s credit market is underdeveloped, and huge part of consumers have yet remained untouched. SBI Cards is planning to do their best with this IPO.

The valuation stands around 65 thousand crores. They are expecting an annual growth (CAGR) of 25%, which seems to be quite realistic owing to experts who say that the Indian credit card market shall grow at a CAGR of 27%. In 2018, SBI had six crores cards in the market, which shoot-up to a massive nine crores by the end of 2019,The Credit Card industry is definitely on the rise. It might see its golden period soon because of the immense competition of companies, each backed by heavyweights. SBI Cards IPO will also mean that other players would want to get listed too.

The convenience of technology, the attractive offers on websites, the EMI offers on cards, and expanding payment infrastructure will all contribute to its growth boost by the millennials. The spending in 21st generations is changing rapidly.
the convenience of technology, the attractive offers on websites, the EMI offers on cards, and expanding payment infrastructure will all contribute to its growth boost by the millennials. The spending in 21st generations is changing rapidly.

Rich Dad Poor Dad Summary

Rich Dad Poor Dad is all about the basic principles of building wealth and increasing financial education.

In the book, Robert Kiyosaki has two dads. His biological father, who he calls his poor dad, and his friend’s dad, who he calls his rich dad.

Both of his dads were well educated and successful in their own right. His poor dad held a Ph.D. and was a lecturer, and his rich dad was an entrepreneur.

Throughout this book, Kiyosaki compares the wealth building advice he gets from his rich dad to that he gets from his poor dad.

But both of them have very different views and behaviors when it came to money and wealth, and these difference are what made one of them the richest man in Hawaii, and the other earning just enough to cover his bills every month.

These stories are meant to be true, but there are some debates about whether Kiyosaki did indeed have two dads. Personally, I don’t think it really matters if they’re true or not, the example of having two dads helps to illustrate the principle of the book – which is what the rich teach their kids about money, that the poor and middle class do not.

About Author :

Robert Kiyosaki tells the story of his two Dad’s in his childhood. His own father and the father of his best friend. While he loved both, they were very different when it came to dealing with finances.

The Book’s Structure:

The book starts off as a story detailing some of the events, conversations, and lessons that Kiyosaki had with both of his dads.

It then transitions from a story into financial lessons about building wealth.

At the end of each chapter, there is a recap along with a study session. By taking the time to answer the questions laid out in the study sessions, it helps you to understand how the principles Kiyosaki is teaching can be applied to your own life.

When reading the book from front to back, the chapter recaps are a bit annoying because you end up reading the same information again , but they would be very useful when re-visiting the book as they would give you a quick refresh without you having to read the whole book again.

Key Points:

Mentioned throughout the book is a game called Cashflow that Kiyosaki had created.

After reading the book, I went and played Cashflow and it helped me to cement the principles that I had just been taught, as well as being able to see how they played out in ‘real-life’.

One thing that I took away from that game was the Personal Financial Statement – and I mean I literally took it away!

Your Personal Financial Statement pops up during your turn after you have rolled the dice. This allows you to see your current financial position which helps you assess what action you should take during your move.

I loved the way this information was presented, so I went a downloaded a free copy of the spreadsheet from the Rich Dad website (you can get it from here) and I now use it in my own financial accounts.

Securities and Exchange Board of India(SEBI)


Securities and Exchange Board of India (SEBI) is a regulatory body of the Government of India. It controls the securities market. It was established on April 12, 1992 under the SEBI Act, 1992.

SEBI headquartered is situated at the Bandra Kurla Complex in Mumbai, India. It has regional offices in major cities of India such as New Delhi, Kolkata, Chennai and Ahmadabad. These cover the North, South, East and West regions of India. Besides, it has a network of local branch offices in prominent Indian cities.


SEBI has a corporate framework comprising of various departments each managed by a department head. Some of the departments are foreign portfolio investors, communications, human resources, collective investment schemes, commodity and derivative market regulation, legal affairs department, etc.

SEBI’s hierarchical organisation structure consists of nine members:

  • a chairman nominated by the Union Government of India
  • two members who are officers from the Union Finance Ministry
  • one member from the Reserve Bank of India
  • five other members who are also nominated by the Union Government of India.


The Preamble of the Securities and Exchange Board of India describes the basic functions of SEBI is the protection of investors interests in securities and to be a platform to promote, develop and regulate the securities market in India as well as the relating matters that are connected with it.

The securities exchange board is permitted to approve rules and laws pertaining to the stock exchanges. It also implies that SEBI should enforce the laws for stock exchanges to follow. SEBI examines books of accounts of financial mediators and recognized stock exchanges. Another role of SEBI is to urge respective companies to list their shares in stock exchanges and manage the registration of distributors/brokers.


The SEBI board has three main powers:

1.Quasi-judicial- In this, SEBI can deliver judgments related to the securities market pertaining to fraud and other unethical practices. This helps to ensure fairness, transparency, and accountability in the securities market.

2.Quasi-legislative- These powers allow SEBI to frame rules and regulations to protect interests if the investors. Some of its regulations consists of Insider Trading Regulations, Listing Obligation, and Disclosure Requirements etc. These have been formulated to keep malpractices at bay.

3.Quasi-executive- SEBI is empowered to implement its regulations and to put up a case against violators. It is also authorized to inspect books of accounts and other documents if it comes across any violation of the regulations.

Despite the powers, the results of SEBI’s functions still have to go through the Securities Appellate Tribunal and the Supreme Court of India.

👉In this blog, we have learned a lot about SEBI and the various things related to SEBI. Very soon i will write more blogs on famous Organisations of economy. Till keep reading & increasing your knowledge in field of finance and do not forget to love & support my blogs .🤗 

Types of Investors in Indian Stock Market

An investor is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns. Investors utilize investments in order to grow their money and/or provide an income during retirement, such as with an annuity.
but do you know there are also types of Investors.Types of investors in Indian stock market are:


A retail investor, also known as an individual investor, is a non-professional investor who buys and sells securities, mutual funds or exchange traded funds (ETFs) through traditional or online brokerage firms or savings accounts.

Retail investors invest much smaller amounts than large institutional investors, such as mutual funds, pensions and university endowments, and trade less frequently. But wealthier retail investors can now access alternative investment classes like private equity and hedge funds.


An institutional investor is a non-bank person or organization that trades securities in large enough share quantities or dollar amounts that it qualifies for preferential treatment and lower commissions.

An institutional investor is an organization that invests on behalf of its members. Institutional investors face fewer protective regulations because it is assumed they are more knowledgeable and better able to protect themselves. There are generally six types of institutional investors: endowment funds, commercial banks, mutual funds, hedge funds, pension funds and insurance companies.

There are two types of institutional investor :

A) Foreign Institutional Investor (FII)

A foreign institutional investor (FII) is an investor or investment fund registered in a country outside of the one in which it is investing. Institutional investors most notably include hedge funds, insurance companies, pension funds and mutual funds. The term is used most commonly in India and refers to outside companies investing in the financial markets of India.

B) Domestic institutional Investor

Domestic institutional Investor are those institutional investors which undertake investment in securities and other financial assets of the country they are based in.

Institutional investment is defined to be the investment done by institutions or organizations such as banks, insurance companies, mutual fund houses, etc in the financial or real assets of a country. Simply stated, domestic institutional investors use pooled funds to trade in securities and assets of their country.

These investment decisions are influenced by various domestic economic as well as political trends. In addition to the foreign institutional investors, the domestic institutional investors also affect the net investment flows into the economy.

Types Of shares In Indian Stock Market

when we buy any share we become shareholder of company but do you know there are also types of share. Basically there are three types of share :

1) Equity shares (ordinary share)

These are the shares that are traded on the stock exchange and are also called ordinary shares. Bulk of the shares that are traded on the stock exchanges, comprise equity shares.

The owners of these equity shares are entitled to dividends, voting rights and all other benefits that share holders have. Equity shares are issued at different face values.

2) Shares with Differential Voting Rights (DVR)

The Tata Motors shares with Differential Voting Rights is traded along with equity shares. More popularly known as DVR, these come with voting rights, that may not be the same as equity share holders. In fact, they could be just 10 per cent of the voting rights of normal equity shareholders. However, investors tend to get compensated by higher dividends. Shares with Differential Voting Rights, tend to trade at a lower value as compared to ordinary shares.

For example, the equity shares of Tata Motors is traded at a premium to the DVRs of the company. The equity shares are traded at Rs 400, while the DVRs are traded at Rs 295. Jain Irrigation is another company that has issued DVR in India.

3) Preference Shares

The third category of shares that are issued in India, is the preferential shares. These shares give shareholders the rights to dividends ahead of the equity shareholders. Because of its preference in terms of dividend they have been named as preference shares. In the case of preference shares a fixed dividend is declared every year. On the other, for a equity shareholder, the dividend would be declared based on the profits of the company.

The other important difference is that preference shareholders, do not have voting rights, but,  equity shareholder has voting rights. Under preference shares there maybe various categories, including cumulative preferred, which entitles the holder to receive any dividend that is skipped. There is also a category called participating preferred, which could give dividends, plus extra earnings, based on other parameters, like profits of the company etc. In India, the DVR category has yet to catch-up, though the preference shares have been around for sometime now. Tata Motors has made the DVR very popular and it is also heavily traded.

Most popular category of shares to be honest most category of shares, apart from equity shares are hardly issued today. In fact, equity shares remain the most preferred and the most sought after. This is also because they are freely listed and traded through the stock exchanges in India.  So, if you are looking to buy shares, equity shares would be the best way to go about buying.

👉 In this blog, we have learned a lot about types of shares in stock market. very soon i will write a blog on types of investor in indian stock market.Till keep reading & increasing your knowledge in field of finance and keep loving & supporting my blog 
– stockbuddyneeraj

Investment options


Broadly speaking, savings bank account, money market/liquid funds and fixed deposits with banks may be considered as short-term financial investment options.

1) Savings Bank Account

It is often the first banking product people use, which offers low interest (4%-6% p.a.), making them only marginally better than fixed deposits.

2) Money Market or Liquid Funds

These are a specialized form of mutual funds that invest in extremely short-term fixed income instruments and thereby provide easy liquidity. Unlike most mutual funds, money market funds are primarily oriented towards protecting your capital and then, aim to maximise returns. Money market funds usually yield better returns than savings accounts, but lower than bank fixed deposits.

3) Fixed Deposits with Banks

These are also referred to as term deposits and minimum investment period for bank FDs is 30 days. Fixed Deposits with banks are for investors with low risk appetite, and may be considered for 6-12 months investment period as normally interest on less than 6 months bank FDs is likely to be lower than money market fund returns.


There are several options available for long term investments like Post Office Savings Schemes, Public Provident Fund, Company Fixed Deposits, Bonds and Debentures, Mutual Funds etc.

1) Post Office Savings

Post Office Monthly Income Scheme is a low risk saving instrument,which can be availed through any post office. It provides an interest rate of 8.4% per annum, which is paid monthly. Minimum amount, which can be invested, is Rs. 1,000/-and additional investment in multiples of 1,500/-. Maximum amount is Rs. 4,50,000/- (if Single) or Rs. 9,00,000/- (if held Jointly) during a year. It has a maturity period of 6 years. A bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is more than one year old. A deduction of 5% is levied from the principal amount if withdrawn prematurely; the 10% bonus is also denied.

2) Public Provident Fund

A long term savings instrument with a maturity of 15 years and interest payable at 8.7% per annum compounded annually. A PPF account can be opened through a nationalized bank at any time during the year and is open all through the year for depositing money. Tax benefits can be availed for the amount invested and interest accrued is tax-free. A withdrawal is permissible every year from the seventh financial year of the date of opening of the account and the amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower the amount of loan if any.

3) Company Fixed Deposits

These are short-term (six months) to medium-term (three to five years) borrowings by companies at a fixed rate of interest which is payable monthly,quarterly, semi-annually or annually. They can also be cumulative fixed deposits where the entire principal along with the interest is paid at the end of the loan period. The rate of interest varies between 8-12% per annum for company FDs. The interest received is after deduction of taxes.

4) Bonds and Debentures

It is a fixed income (debt) instrument issued for a period of more than one year with the purpose of raising capital. The central or state government,corporations and similar institutions sell bonds. A bond is generally a promise to repay the principal along with a fixed rate of interest on a specified date, called the Maturity date. Debentures are instruments issued by companies similar to bonds. These could be convertible, non-convertible or partly convertible. Convertible debentures can be fully converted to equity at the option of the debenture holder on maturity. Non-convertible debentures are fully repaid on maturity and partly convertible debentures are partly repaid and partly convertible on maturity, at the option of the debenture holder.

Mutual Funds

These are funds operated by an investment company which raises money from the public and invests in a group of assets (shares, debentures etc.), in accordance with a stated set of objectives. It is a substitute for those who are unable to invest directly in equities or debt because of resource, time or knowledge constraints. Benefits include professional money management, buying in small amounts and diversification.

Mutual fund units are issued and redeemed by the Fund Management Company based on the fund’s net asset value (NAV), which is determined at the end of each trading session. NAV is calculated as the value of all the shares held by the fund, minus expenses, divided by the number of units issued. Mutual Funds are usually long term investment vehicles though there some categories of mutual funds, such as money market mutual funds which are short term instruments.



The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get returns on it in the future. This is called Investment.


One needs to invest to:
• earn return on your idle resources
• generate a specified sum of money for a specific goal in life
• make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet the cost of Inflation.

Inflation is the rate at which the cost of living increases. The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past.

For example, if there was a 6% inflation rate for the next 20 years, a Rs. 100 purchase today would cost Rs. 321 in 20 years. This is why it is important to consider inflation as a factor in any long-term investment strategy. Remember to look at an investment’s ‘real’ rate of return, which is the return after inflation. The aim of investments should be to provide a return above the inflation rate to ensure that the investment does not decrease in value.


The sooner one starts investing the better. By investing early you allow your investments more time to grow, whereby the concept of compounding increases your income, by accumulating the principal and the interest or dividend earned on it, year after year.

The three golden rules for all investors are:
• Invest early
• Invest regularly
• Invest for long term and not short term


The first step in planning your investments is to figure out the right investment that fits your profile and needs.

Here are a few things to keep in mind when planning your investments:

  • Choose investments carefully after doing adequate research
  • Don’t fall for quick-buck schemes that promise high returns in a short time
  • Review your stock and mutual fund investments periodically
  • Consider the tax implications on returns you earn from your investments
  • Keep things simple and avoid complicated investments that you don’t understand


Before making any investment, there are certain steps to ensure safety of investments. There are Few Important steps to investing where the investor must make sure to:

  • Obtain written documents explaining the investment
  • Read and understand such documents
  • Verify the legitimacy of the investment
  • Find out the costs and benefits associated with the investment
  • Assess the risk-return profile of the investment
  • Know the liquidity and safety aspects of the investment
  • Ascertain if it is appropriate for your specific goals
  • Compare these details with other investment opportunities available
  • Examine if it fits in with other investments you are considering or you have already made
  • Deal only through an authorised intermediary
  • Seek all clarifications about the intermediary and the investment and invest only if you are comfortable. Refuse to invest if you are not convinced.
  • Explore the options available to you if something were to go wrong, and then, if satisfied, make the investment.

👉 In this blog, we have learned a lot about investments and the various things related to investments. very soon i will write a blog on types of investments.Till keep reading & increasing your knowledge in field of finance and keep loving & supporting my blog😊😊😊😊
– stockbuddyneeraj

History of stock exchanges

What is stock exchange?

The stock exchange or market is a place where stocks, shares and other long-term commitments or investment are bought and sold.

Economic significance:

The economic significance of a stock market results from the increased marketability resulting from a stock exchange share quotation. The stock exchange is an essential institution for the existence of the capitalist system of the economy and for the smooth functioning of the corporate form of organisation.

Definition of stock exchange according the Securities Contracts (Regulation) Act of 1956 :

The Securities Contracts (Regulation) Act of 1956 defines, a stock exchange as “an association, organisation or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling, business in buying, selling and dealing in securities.”

Stock Exchanges are noted as “an essential concomitant of the Capitalistic System of economy. It is indispensable for the proper functioning of corporate enterprise. It brings together large amounts of capital necessary for the economic progress of a country. It is a stronghold of capital and part of money market. It provides necessary mobility to capital and indirect the flow of capital into profitable and successful enterprises. It is the barometer of general economic progress in a country and exerts a powerful and significant influence as a stimulant of business activity.”

History of stock exchange in india:

The first organised stock exchange in India was started in 1875 at Bombay and it is stated to be the oldest in Asia. In 1894 the Ahmedabad Stock Exchange was started to facilitate dealings in the shares of textile mills there. The Calcutta stock exchange was started in 1908 to provide a market for shares of plantations and jute mills.

Then the madras stock exchange was started in 1920. At present there are 23 stock exchanges in the country, 21 of them being regional ones with allotted areas. Two others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate to have nation-wise trading.

Location of stock exchanges in india:

They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur’ Kanpur, Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.

Regulator of stock exchanges:

The Stock Exchanges are being administered by their governing boards and executive chiefs. Policies relating to their regulation and control are laid down by the Ministry of Finance. Government also Constituted Securities and Exchange Board of India (SEBI) in April 1988 for orderly development and regulation of securities industry and stock exchanges.