Following a huge 166 times subscription to the initial public offering (IPO) of Ujjivan Small Finance Bank last week, allotment of shares of the upcoming financial institution was completed on Tuesday. Now the stock of Ujjivan Small Finance Bank is set to get listed on Thursday, December 12.
Those investors who have taken part in the Ujjivan Small Finance Bank IPO can check how many shares have been allotted to them. For this, they will need to go to the website of the IPO registrar Karvy Fintech (https://corpreg.karvy.com/ipostatus/) and check the status of their allotment. They need to have either their Application No. or DPID/Client ID or PAN. In case if an investor selects DPID/Client ID, they will need to select their depository – NSDL or CDSL.
Subscription to the Rs 750 crore Ujjivan Small Finance Bank IPO was done from December 2-4, 2019 during which it got subscribed 165.67 times by end of the bidding process.
In an IPO note last week, Anusha Raheja, BFSI Research Analyst at LKP Securities wrote, “Ujjivan is a play on the MFI growth story. So far, it has effectively managed to grow assets with decent asset quality profile. However, going forward trajectory of business model will change with buildup of non-MFI loans and ramp of retail liabilities which shall be an uphill task for the new management in the wake of tough competition in the market space. Also, the bank will have to reduce down the promoter stake further to 40% over the next 2 yrs from levels of 84% post IPO as per RBI guidelines which will be a hangover in the medium term. In this backdrop, in our view, the bank is not likely to trade at higher multiples. Our back of the envelope calculation suggests, the bank is trading at 1.6x FY22e.”
“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,” Santosh Meena, senior analyst, TradingBells said in a recent report.
The bank is promoted by Ujjivan Financial Services. The IPO comprises of 12.39 crore shares, which got subscribed over 165.67 times till its last day i.e. December 4, 2019.