Ujjivan Small Finance Bank makes a sparkling debut

On Thursday, Ujjivan Small Finance Bank made a sparkling debut on both the exchanges BSE and NSE, respectively, as it got listed at 59 per cent premium to issue price delivering bumper gains to investors who got its allocations.

The stock made a listing gain of 58.78 per cent as it opened at Rs 58.75 on its debut compared to its issue price of Rs. 37. For the primary market, the IPO had recorded the highest number of subscriptions. It witnessed the subscription of more than 165 times last week in its Rs. 750 crores IPO. It received bids for 2,053.5 crores shares on the final day of IPO. The IPO was open for subscription during December 2-4, 2019, at a price band of Rs. 36-37. Investors believed the IPO to be strong due to attractive valuation and asset quality. The IPO was managed by Kotak Mahindra Capital Company, JM Financial, and IIFL Securities. The proceeds from the issue were planned to be utilised for augmenting the company's capital base to meet any future requirements.

Ujjivan Financial Services, which is a microfinance lender is the holding company of Ujjivan Small Finance Bank and, subsequently, its shareholders received a discount of Rs. 2 on the IPO price band.

This debut IPO has beaten the record of Indian Railway Catering and Tourism Corporation (IRCTC), which was considered as the most subscribed IPO in 2019. The IPO of IRCTC was subscribed 111.91 times in October.