Shares of Ujjivan Small Finance Bank were subscribed over 165 times on Wednesday, the final day of its initial public offering through which the lender aims to raise up to Rs 750 crore ($104.50 million).
Investors bid for 2,053 crore shares of the unit of listed microfinance lender Ujjivan Financial Services compared with the 12.4 crore shares on offer, stock exchange data as of 6 pm showed. The company had set a price range of Rs 36 to Rs 37.
The public offering comes as the bank races to comply with the Reserve Bank of India's requirement for small finance banks to list its shares within three years of starting operations. The deadline set for Ujjivan Small Finance Bank is January 31.
The lender plans to use the money raised from the IPO to boost its capital. The bank's Tier-1 capital ratio, a key measure of a bank's financial strength, stood at 18.16 per cent as of September end, according to its prospectus.
The offering follows a bumper subscription and trading debut on Wednesday by Kerala-based CSB Bank Ltd, whose shares surged 53.9 per cent.
Kotak Mahindra Capital Company Ltd, IIFL Securities Ltd and JM Financial Ltd were the book running lead managers for Ujjivan Small Finance Bank's public offering.
($1 = Rs 71.77)