Ujjivan Small Finance Bank subscribed 170x on final day

The IPO witnessed an unprecedented demand of over Rs75,000cr as against the total issue size of Rs442cr, excluding the anchor portion.

Dec 05, 2019 08:12 IST India Infoline News Service

Ujjivan Small Finance Bank
The Initial Public offering of Ujjivan Small Finance Bank (USFB) which caters to the unbanked urban poor and young middle-class customers, was subscribed a massive 170.24 times on the final day of bidding on Wednesday.

The portion reserved for retail investors was subscribed 50.16 times, non-institutional investors 486.14 times, qualified institutional investors was subscribed 113.80 times and reservation for holding company shareholders was subscribed 4.23 times.

The IPO witnessed an unprecedented demand of over Rs75,000cr against the total issue size of Rs442cr, excluding the anchor portion.

The Initial Public Offering (IPO), received bids for 2,053cr shares, as against the total issue size of 12.06cr equity shares, offered at a price band of Rs36-37/ share.

The IPO received bids from ~16.34 lakh investors at last count at 6.45PM.

The proposed Issue of USFB comprises a fresh issue of equity shares aggregating up to Rs750cr and a portion of the issue, aggregating up to Rs75cr, has been made available for the eligible UFSL shareholders on a proportionate basis. Out of the total issue size, USFB had on November 29 mopped up Rs303.75cr from 18 anchor investors.

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

The small finance bank overtakes IRCTC to become the most subscribed IPO in 2019 and the best BFSI sector IPO in the last 4 years in comparison with Micro Finance Institutions i.e Spandana Spoorthy, Credit Access Grameen and Aavas Financiers which were subscribed 1.05 times, 0.97 times and 2.22 times respectively; Financial services providers such as MAS Financial was subscribed 128.39 times in 2017 and pure-play banking service providers like DCB, RBL, Bandhan, AU SFB and recently listed CSB Bank was subscribed 35.26 times, 69.62 times, 10.52 times, 53.20 times and 86 times respectively.

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