Ujjivan Small Finance Bank IPO subscribed 81% so far on Day 1

The retail category has been oversubscribed by 4.6 times, while non-institutional investor category has subscribed 17% percent, and qualified institutional buyers, 3% so far.

Dec 02, 2019 08:12 IST India Infoline News Service

Ujjivan Small Finance Bank

The initial public offering of Ujjivan Small Finance Bank (USFB) has been subscribed 81% so far (2 PM) on December 2, Day 1 bidding.

NSE data showed that the offer has received bids for 10.03cr equity shares against the IPO size of 12.39cr shares (excluding anchor portion).

The retail category has been oversubscribed by 4.6 times, while non-institutional investor category has subscribed 17% percent, and qualified institutional buyers, 3% so far.

The Ujjivan Small Finance Bank IPO has also reserved some portion worth Rs75cr for shareholders of Ujjivan Financial Services, which have been subscribed 38%.

The small finance bank has fixed the bid lot at 400 shares and equivalent multiples thereafter. The company aims to gather ~Rs750cr via the issue  which is open till Dec 4.

Ujjivan Financial Services controls USFB which offers small finance to underserved and unserved segments in India.

At the end of September 2019, the bank (established 2017) had a net interest income of Rs740.4cr, with a net profit at Rs187.1cr. The Return on Equity (RoE) stood at 19.6%, while Return on Asset (RoA) came in at 2.5%.

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