Post the IPO, the promoter’s stake will fall to about 84% from the current 94.4%
The IPO with a price band of ₹36-37 per share was subscribed 166 times
Mumbai: Shares of Ujjivan Small Finance Bank made a bumper debut on the stock market on Thursday. The stock closed at ₹55.95, up 51.21% from its issue price of ₹37, after opening at a premium of 58.78%. The initial public offering (IPO) with a price band of ₹36-37 per share was open for subscription on 2-4 December.
The IPO was subscribed 170 times on the final day of the share sale, making it one of the most subscribed public offers in the last few years.
Last week, CSB Bank Ltd saw a stellar listing, notching the second-biggest listing gain so far this year. It closed at a 53.87% premium to its issue price. State-run Indian Railway Catering and Tourism Corp. Ltd surged 128% on its stock market debut in October.
Ahead of the share sale, ICICI Securities said at the IPO price band of ₹36-37, the stock was available at a price to book value of 2.2 times (post-issue) at the upper end of the band on the first half of FY20 basis.
“It had a steady ride in terms of advances growth along with maintaining asset quality. There was continued focus on garnering retail liability along with building current account saving account (CASA) base," ICICI Securities said in a note on 29 November.
Ujjivan Small Finance Bank’s move to float an IPO was primarily to comply with the Reserve Bank of India’s norms, mandating small finance banks (SFBs) to list within three years of receiving the banking licence.
The SFB is a subsidiary of Ujjivan Financial Services Ltd (UFSL), which was incorporated in 2005.
With presence across 24 states and union territories, Ujjivan SFB offers a diverse range of products, including loans for micro banking customers (group loans and individual loans), agriculture and allied loans, micro and small enterprise (MSE) loans, affordable housing loans and financial institutions group loans.