Ujjivan Small Finance Bank's IPO or Initial Public Offering was fully subscribed within the first five hours of opening of its subscription. The Ujjivan Small Finance Bank IPO witnessed good demand for its shares as it received total bids of 13,21,38,400 shares, of which 10,18,89,600 bids came at the cut-off price. Ujjivan Small Finance Bank is selling 12,39,58,333 shares in the price band of Rs 36-37. Ujjivan Small Finance Bank is planning to raise Rs 750 crore in the IPO, which will end on December 4.
Ahead of the IPO, Ujjivan Small Finance Bank raised Rs 250 crore in a pre-IPO round this month. Ujjivan Small Finance Bank has branches in 24 states and a customer base of 49 lakh as of September 30, 2019, the bank said in its red-herring prospectus.
The IPO of Ujjivan Small Finance Bank comprises a fresh issue of equity shares aggregating up to around Rs 750 crore. A portion of the issue, aggregating up to Rs 75 crore, has been made available for the eligible Ujjivan Financial Services (UFSL) shareholders on a proportionate basis.
Investors can bid for Ujjivan Small Finance Bank shares in lot sizes of 400 equity shares per lot and in multiples of 400 shares thereafter.
IIFL Holdings Limited, JM Financial Consultants Private Limited and Kotak Mahindra Capital Company Limited are the book running lead managers of the Ujjivan Small Finance Bank IPO and Karvy Computershare Private Limited is the registrar for the IPO.
The tentative date of Ujjivan Small Finance Bank IPO listing is December 12, 2019.
"At the price band of Rs. 36-37, the issue is priced at 29.8 times and 30.5 times respectively of its FY19 earnings whereas it is available at 2.5 times of its book value at the lower and upper bands each. While comparing with its closest peers, the stock is reasonably priced with robust NIMs, healthy return ratios and better asset quality than its peers. We recommend investors to subscribe the issue at Cut-Off price," SBI Cap Securities, said in a research report.