Ujjivan SFB IPO fully subscribed on Day 1 of bidding

Mumbai, December 2, 2019: The Initial Public offering of Ujjivan Small Finance Bank (USFB) which caters to the unbanked urban poor and young middle class customers, was fully subscribed on the first day of bidding on Monday.

The portion reserved for retail buyers was subscribed 8.85 times, non-institutional buyers 0.44 times, qualified institutional buyers was subscribed 0.24 times and shareholder reservation was subscribed 0.74 times. The overall subscription on day one was 1.67 times.

The Initial Public Offering (IPO), received 20,14,26,100 bids, as against the total issue size of 12,06,08,108 equity shares, offered at a price band of Rs 36-37 per share.

Shares offered to the retail investor quota saw an outstanding demand of 16.1 crore shares, as against the book size of 1.82 crore shares.

The proposed Issue of USFB comprises fresh issue of equity shares aggregating up to Rs 750 crore and a portion of the issue, aggregating up to Rs 75 crore, has been made available for the eligible UFSL shareholders on a proportionate basis.

USFB had on November 29 mopped up Rs 303.75 crore from 18 anchor investors, including Government of Singapore, Monetary Authority of Singapore, CX Partners Fund, Aberdeen, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Sundaram Mutual Fund, Goldman Sachs India and ICICI Prudential ahead of its IPO.

Bidding for the IPO closes on December 4, 2019.

The book running lead managers to the offer are Kotak Mahindra Capital Company Limited, IIFL Securities Limited and JM Financial Limited.

Collectively, brokerage houses like Angel Broking, Canara Bank Securities, Geojit Financial Services, ICICI Securities, Motilal Oswal Financial Services, SBICap Securities, SMC Global Securities, Ventura Securities, Nirmal Bang, Anand Rathi, IDBI Capital and Sharekhan have given a “subscribe” rating with a long term outlook keeping in mind its attractive pricing, growth prospects, maintain asset quality, improved financials, healthy return ratios besides its continued focus on garnering retail liability and CASA base.