Ujjivan Small Finance Bank share to make market debut today; will it be another bumper listing?

Share of Ujjivan Small Finance Bank will be listed on BSE and NSE today. Analysts are expecting Ujjivan Small Finance Bank to make its stock market debut at a premium of issue price of Rs 37 per share. Santosh Meena, Senior Analyst, TradingBells said, "Grey market is suggesting a premium of Rs 27, which means a listing at around Rs 64. If we go through the overall picture then retail investors can make a listing gain of more than 50 per cent."

The IPO of Ujjivan Small Finance Bank was held from December 2 to December 4. The issue saw bumper subscription of 166 times on final day of bidding. Shares for Ujjivan Small Finance Bank IPO were available in a price band of Rs 36-Rs 37. The subsidiary of microfinance lender Ujjivan Financial Services aims to collect Rs 750 crore through the IPO.

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Shareholders of the parent firm Ujjivan Financial Services Limited were given a discount of Rs 2 per equity share on the issue price. Against the issue size of 12.39 crore shares, IPO of Ujjivan Small Finance Bank received bids for 2,053.5 crore shares. The total amount for bids reached Rs 76,000 crore.

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The portion allocated for retail investors was subscribed 48.67 times. Shareholders of the parent firm Ujjivan Financial Services Limited were given a discount of Rs 2 per equity share on the issue price. The quota reserved for qualified institutional buyers saw 110.72 times subscription and non institutional investors put in bids for 473 times for the portion of shares reserved for them. Bids for the IPO were filed in lots of 400 shares and in multiples of 400 shares thereafter. Ujjivan Small Finance Bank appointed IIFL Holdings Limited, JM Financial Consultants Private Limited and Kotak Mahindra Capital Company Limited as lead managers for conducting the IPO.

Its parent firm microfinance lender Ujjivan Financial Services was listed in 2016, after receiving an in-principle licence from the Reserve Bank of India to start a small finance bank. Ujjivan Small Finance Bank raised Rs 303.75 crore from anchor investors. The small finance bank cleared the allocation of 8,20,94,594 shares at  Rs 37 apiece to 18 anchor investors.

Government of Singapore, Monetary Authority of Singapore, CX Partners Fund, Aberdeen, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Sundaram Mutual Fund, Goldman Sachs India, ICICI Prudential participated in the anchor investor bidding, the bank said.