The Securities and Exchange Board of India approved Ujjivan Small Finance Bank Ltd.'s plan to raise 12 billion rupees in an IPO, Press Trust of India reported Oct. 22.

The bank filed a draft red herring prospectus for the IPO in August and received the regulator's observations on Oct. 16.

Ujjivan Small Finance Bank will list by Jan. 31, 2020, as per the banking licence issued by the Reserve Bank of India, the bank's parent Ujjivan Financial Services Ltd. said Oct. 21. The bank has reserved up to 1.20 billion rupees of shares in the IPO for subscription by eligible shareholders of Ujjivan Financial.

Press Trust of India reported that Ujjivan Small Finance Bank will use proceeds from the IPO to boost its capital base to meet future requirements.

As of Oct. 22, US$1 was equivalent to 70.82 Indian rupees.