Ujjivan Small Finance Bank stock lists at 59% premium to issue price

Ujjivan Small Finance Bank stock made a strong debut on BSE and NSE today. Share of Ujjivan Small Finance Bank listed at a premium of 56.75% over the issue price on BSE. The stock opened at Rs 58 on BSE. 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 37. Analysts were expecting Ujjivan Small Finance Bank to make its stock market debut at a premium of at least 50% to issue price of Rs 37 per share.

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The intitial public offer (IPO) of Ujjivan Small Finance Bank was held from December 2 to December 4.

Bidding for shares of Ujjivan Small Finance Bank IPO was done in the price band of Rs 36-Rs 37. Ujjivan Small Finance Bank issued 12.39 crore shares with an aim to raise Rs 750 crore from the primary market. The issue attracted bumper subscription of 166 times on final day of bidding, the largest in 2019. The lender received bids for 2,053.5 crore shares on the final day of IPO. The total amount for bids reached Rs 76,000 crore. Ujjivan Small Finance Bank went past Indian Railway Catering and Tourism Corporation (IRCTC) to become the most subscribed IPO this year. IPO of IRCTC was subscribed 111.91 times in October.

Also read: Ujjivan Small Finance Bank stock to list on BSE, NSE on December 12

Shareholders of the parent firm Ujjivan Financial Services Limited were given a discount of Rs 2 per equity share on the issue price. Meanwhile, Ujjivan Financial Services share price was trading 4.07% lower at Rs 326.60 on BSE.

Microfinance lender Ujjivan Financial Services was listed in 2016, after getting an in-principle licence from the Reserve Bank of India to start a small finance bank.

A majority of analysts had given subscribe call for the Ujjivan Small Finance Bank IPO citing attractive valuations at which the share was available during the issue.

Ujjivan Small Finance Bank had filed draft papers with Sebi in August and  obtained the regulator's observations on October 16. The proceeds of the issue were planned to be utilised towards augmenting the company's capital base to meet future requirements.