NEW DELHI :
After the allotment of shares for Ujjivan Small Finance Bank's initial public offering (IPO) was completed yesterday, listing is likely to be held tomorrow, December 12. If you had applied for the Ujjivan bank's IPO, it is likely that your stock broker has already sent you the status of your allocation. If not, then you can go to the website of the IPO registrar Karvy Fintech to check the status of your allotment.
Going by the massive demand that the Ujjivan Small Finance Bank's shares had in its IPO, it is likely that its shares would be listed at a premium on stock exchanges. In the grey market, Ujjivan shares are changing hands at a premium of ₹22-24 which indicates that the shares could list at around ₹60 per share, gaining over 60%.
LKP Securities's BFSI research analyst Anusha Raheja said the bank is not likely to trade at higher multiples. "Our back of the envelope calculation suggests, the bank is trading at 1.6x FY22e," she said. Most analysts, including Raheja, have found the valuations to be reasonable enough.
Yes Securities found the IPO pricing attractive. "We estimate its RoA/RoE to stabilize at 2.4%/20% in the long run. In this context, IPO pricing is attractive as it values the bank at 2.25x post-money P/BV and 1.8x FY21E P/BV," it said in a report.
The bank, promoted by Ujjivan Financial Services Ltd, has already got in-principle approvals from both the BSE and NSE for listing of its shares. The ₹750 crore IPO for sale of 12.39 crore shares was subscribed a whopping 165.64 times in between December 2 and 4.
10% of the IPO was kept reserved for retail individual investors and it saw over subscription of 50.16 times. The category reserved for qualified institutional buyers (QIBs) was subscribed 113.80 times and that for non-institutional investors was subscribed 486.14 times.
Ujjivan Small Finance Bank has fixed the IPO price of ₹37 while a discount of ₹2 each share has been offered to existing shareholders of the parent company Ujjivan Financial Services. The face value of the bank's equity shares is ₹10 each and the issue price is 3.7 times the face value of the equity shares.