Ujjivan Small Finance Bank IPO: Share likely to list at 50% premium over issue price

Ujjivan Small Finance Bank IPO: Share likely to list at 50% premium over issue price

After drawing robust investor response for its initial public offering (IPO), Ujjivan Small Finance Bank is likely to make strong market debut. Shares of Ujjivan Small Finance Bank will be listed on the Bombay Stock Exchange as well as the National Stock Exchange on December 12. According to market analyst, the share of Ujjivan Small Finance Bank is likely to list at around Rs 64. That amounts to 50 per cent premium to the issue price of Rs 37 at the higher end.

“Grey market is suggesting a premium of Rs 27, which means a listing at around Rs 64. If we go through the overall picture then retail investors can make a listing gain of more than 50 per cent,” said Santosh Meena, Senior Analyst, TradingBells.

Those who had applied for shares in the Rs 750-crore IPO of Ujjivan Small Finance Bank can check their allotment status on the website of Karvy Fintech Private Limited or on the BSE. The IPO allotment status is live now and investor can check the same through application number, DPID/ Client ID or PAN card number.

The IPO, with a price band of Rs 36 to Rs 37 per equity share, opened for subscription on December 2 and closed on December 4. Ahead of the IPO, Ujjivan Small Finance Bank raised Rs 250 crore in a pre-IPO round in November.

The IPO of Ujjivan Small Finance Bank had received an overwhelming response from all investors with a subscription of 166 times, making it the most successful share sale since January 2018. It left behind the Rs 645 crore IPO of state-owned Indian Railway Catering and Tourism Corporation (IRCTC), which saw 112 times subscription in October, 2019. Among others, CSB Bank, Affle India and Polycab India made strong stock market debut this year with shares subscribing over 50 times. IRCTC was listed at 101 per cent premium at Rs 644, while CSB Bank surged 41 per cent on debut at Rs 275.

“Ujjivan Small finance attracts huge subscriptions from all categories of investors because of its attractive valuation and strong asset quality. The IPO comes with PE of 16.5 which is half of its listed peer AU SFB and PB of 2.3 where AU SFB is trading at PB of 6.9. Apart from attractive valuations, the rural penetration of its promoter will help it to expand its banking services to PAN India,” said analyst at TradingBells.

The total IPO size of Ujjivan Small Finance Bank was 12.39 crore shares, while it received bids for 2,053.5 crore share. The portion allocated for retail investors was subscribed 48.67 times, while the quota reserved for qualified institutional buyers saw 110.72 times subscription and non institutional investors put in bids for 473 times for the portion of shares reserved for them.