Ujjivan IPO Subscribed 21% On Day 1

Mumbai: The IPO of microfinance player Ujjivan Financial Services was subscribed 21 per cent on the first day of the offer on Thursday.

The Rs 885-crore public issue received bids for 62,49,600 shares against the total issue size of 2,96,63,706 shares, data available with the NSE till 1700 hrs showed.

The qualified institutional buyers (QIBs) category was subscribed 1 per cent while non-institutional investors' quota was at 5 per cent.

The portion set aside for retail investors received 40 per cent subscription, as per the NSE data.

The issue of Ujjivan, which is scheduled to close on May 2, comprises fresh issuance of shares worth Rs 358.16 crore and an offer for sale of up to 24,968,332 shares by the existing shareholders.

Price band for the offer has been fixed at Rs 207-210. 

Ujjivan has raised nearly Rs 265 crore from anchor investors by selling shares at a price of Rs 210 apiece. 

The company, which has already received in-principle nod to set up a small finance bank, would be the second microfinance firm to go public this fiscal. Another microfinance firm Equitas Holdings came out with its IPO earlier this month.

This is also the third microfinance firm to go public. 

The share sale would help Ujjivan bring down the foreign shareholding to around 45 per cent from the current 77 per cent, which is required as per RBI guidelines for setting up a small finance bank. 

The issue is being managed by Kotak Mahindra Capital Company, Axis Capital, ICICI Securities and IIFL Holdings.
 

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)