Ujjivan Small Finance Bank makes strong stock market debut today; lists at 59% premium to issue price

Ujjivan Small Finance Bank, which recently concluded its Rs 750-crore initial public offering (IPO), listed today on both the BSE and NSE at Rs 60.90 against the issue price of Rs 37. The micro-finance bank’s shares listed at a nearly 59 percent premium on its issue price and jumped nearly 70 percent during the intraday trade.

Ujjivan Small Fin Bank lists at Rs 60.90 Vs issue price of Rs 37 pic.twitter.com/jmaK0PFEOh

— CNBC-TV18 (@CNBCTV18Live) December 12, 2019

At 10:45 am, Ujjivan Small Finance Bank’s shares were trading on BSE at Rs 55.65, a gain of 50.41 percent from its issue price of Rs 37 per share. On NSE, the shares commanded a price of Rs 55.90, a gain of 51.08 percent. [caption id=“attachment_4418263” align=“alignleft” width=“380”] Representational image. Reuters[/caption] Intraday, the Ujjivan Small Finance Bank shares jumped to Rs 62.8 per share, 69.72 percent from its issue price. The Rs 750-crore IPO received bids for 2,053 crore shares against the total issue size of 12.39 crore shares, as per the data available with the NSE. The IPO, which was open for subscription during 2-4 December, was subscribed more than 165 times at a price band of Rs 36-37 per share. Ujjivan Small Finance Bank went past Indian Railway Catering and Tourism Corporation (IRCTC) to become the most subscribed IPO so far this year. The IPO of IRCTC was subscribed 111.91 times in October this year. The category meant for qualified institutional buyers (QIBs) was subscribed 111 times, non-institutional investors (NIIs) category witnessed a subscription of 473 times, while the same for retail investors stood at over 49 times. Kotak Mahindra Capital Company, JM Financial and IIFL Securities managed the offer. Microfinance lender Ujjivan Financial Services is the holding company of Ujjivan Small Finance Bank. Ujjivan Small Finance Bank is a mass-market focused small finance bank. Ujjivan Small Finance Bank serves over 49 lakh customers through 552 branches in 232 districts of 24 states and Union Territories in the country. — With PTI inputs