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Ujjivan Small Finance Bank makes a powerful market debut, gets listed at 59% premium

Ujjivan Small Finance Bank got listed at Rs 58 on the BSE, while on the National Stock Exchange (NSE) it got listed at 58.75. The issue price of the bank's initial public offer (IPO) was Rs 37.

By: Express Web Desk | New Delhi | Updated: December 12, 2019 6:36:59 pm
The Ujjivan Small Finance Bank stock further extended the listing price and rose to Rs 62.80 on the BSE and NSE in the early deals on Thursday.

Ujjivan Small Finance Bank made its debut in the stock market today. The scrip of the small finance bank opened at Rs 58 apiece on the BSE at 10 am, up 56.76 per cent from its initial public offer (IPO) issue price of Rs 37. On the National Stock Exchange (NSE), the stock was listed at Rs 58.75, up 58.78 per cent from the issue price.

The stock extended to the listing price and rose to Rs 62.80 on the BSE and NSE in the intraday trade on Thursday. During the day, it hit an intraday low of Rs 53.10 on the BSE before settling at Rs 55.90, down Rs 2.10 or 3.62 per cent from the listing price and up by Rs 18.90 or 51.08 per cent from its issue price.

On NSE, the stock hit an intraday low of Rs 53.05 and eventually ended the day at Rs 55.30, down Rs 3.45 or 5.87 per cent from the listing price on the bourse.

Around 161.33 lakh shares were traded on the BSE during the trade session, while on NSE, the trade volumes stood at 25,14,14,527 shares during the day.

The Rs 750-crore IPO of Ujjivan Small Finance Bank, which is promoted by microfinance lender Ujjivan Financial Services, witnessed a giant 166 times subscription during December 2-4, 2019.

“Ujjivan is a play on the MFI growth story. The bank’s IPO was mainly to comply with RBI norms to list within 3 years of receiving a banking license. Ujjivan Financial Services diluted its stake in the bank from 94.4 percent to 80 percent post IPO. The promoter stake in the bank has to reduce down further to 40 percent in the next 2 years time which shall be a hangover in the near-term,” Anusha Raheja, BFSI Research Analyst at LKP Securities said in a market quote on Wednesday ahead of the stock’s debut.

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