Missed allotment of Ujjivan Small Finance Bank shares? Here's what you should do

Missed allotment of Ujjivan Small Finance Bank shares? Here's what you should do

Share of Ujjivan Small Finance Bank made its market debut at a premium of 59 % to the issue price of Rs 37

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On NSE, Ujjivan Small Finance Bank stock made listing gain of 58.78%, opening at  Rs 58.75 compared to the issue price of Rs 37On NSE, Ujjivan Small Finance Bank stock made listing gain of 58.78%, opening at Rs 58.75 compared to the issue price of Rs 37
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Aseem Thapliyal
  • Dec 12, 2019,
  • Updated Dec 12, 2019 2:25 PM IST

With a subscription bigger than this year's blockbuster IPO of Indian Railway Catering and Tourism Corporation (IRCTC), Ujjivan Small Finance Bank was expected to clock a strong listing today. And the stock listed as per expectations. Share of Ujjivan Small Finance Bank made its market debut at a premium of 59 % to the issue price of Rs 37. On NSE, Ujjivan Small Finance Bank stock made listing gain of 58.78%, opening at  Rs 58.75 compared to the issue price.

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The stock of microfinance lender listed a premium of 56.75% over the issue price on BSE. It opened at Rs 58 on BSE. After the allotment in Ujjivan Small Finance Bank IPO, many were left empty handed. The allotment process for IPO was carried out from December 9 to December 11. The IPO received bids for 2,053.5 crore shares on the final day of IPO against the issue size of 12.39 crore shares. Now, that the stock is available in the primary market, is it a wise move to buy the share? Here's a look at what brokerages and analysts said about the stock.

in a note said that the bank has performed well over the years and is expected to grow its business further with its product innovation strategy and customer-centric approach. There was robust growth in advances/deposits of 21.7 percent/229.4 percent CAGR (FY17 to FY19) where loan to deposit ratio was 1.43 in FY19.

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The brokerage said it expects the lender to get the benefits from its digital advanced technology developments. Also, it focuses more on the middle-income segment of India to serve the unserved and underserved customers.  The brokerage believes the bank is expected to be profitable in the long run.

By Aseem Thapliyal

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

With a subscription bigger than this year's blockbuster IPO of Indian Railway Catering and Tourism Corporation (IRCTC), Ujjivan Small Finance Bank was expected to clock a strong listing today. And the stock listed as per expectations. Share of Ujjivan Small Finance Bank made its market debut at a premium of 59 % to the issue price of Rs 37. On NSE, Ujjivan Small Finance Bank stock made listing gain of 58.78%, opening at  Rs 58.75 compared to the issue price.

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The stock of microfinance lender listed a premium of 56.75% over the issue price on BSE. It opened at Rs 58 on BSE. After the allotment in Ujjivan Small Finance Bank IPO, many were left empty handed. The allotment process for IPO was carried out from December 9 to December 11. The IPO received bids for 2,053.5 crore shares on the final day of IPO against the issue size of 12.39 crore shares. Now, that the stock is available in the primary market, is it a wise move to buy the share? Here's a look at what brokerages and analysts said about the stock.

in a note said that the bank has performed well over the years and is expected to grow its business further with its product innovation strategy and customer-centric approach. There was robust growth in advances/deposits of 21.7 percent/229.4 percent CAGR (FY17 to FY19) where loan to deposit ratio was 1.43 in FY19.

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The brokerage said it expects the lender to get the benefits from its digital advanced technology developments. Also, it focuses more on the middle-income segment of India to serve the unserved and underserved customers.  The brokerage believes the bank is expected to be profitable in the long run.

By Aseem Thapliyal

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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