Ujjivan Small Finance Bank made a strong debut on bourses on Thursday after its initial public offering was subscribed to over 165 times last week. Ujjivan Small Finance Bank shares listed at a nearly 59 percent premium on its issue price and jumped as much as 70 percent in the intraday trade. However, the stock pared some gains to settle 49.4 percent higher at Rs 55.30 per share on NSE.

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On the NSE, the bank's stock price opened at Rs 58.75 per share, up 58.78 percent from its issue price of Rs 37 per share. Intraday, the Ujjivan SFB shares advanced to Rs 62.8 per share, 69.72 percent from its issue price.

On the BSE, shares opened at Rs 58 per share, up 56.75 percent from its issue price and hit a high of Rs 62.8 per share, up 69.7 percent. It settled 51 percent higher at Rs 55.90 on BSE.

Ujjivan Small Finance Bank IPO attracted heavy investor demand with the issue being subscribed a whopping 165.64 times on the final day. The IPO had a price band of Rs 36-37 per share and closed on December 4. The promoter shareholding fell to 85 percent post the IPO.

The Rs 750-crore IPO received bids for 2,053 crore shares against the total issue size of 12.39 crore shares, as per the data available with the NSE.

With a strong subscription, Ujjivan Small Finance Bank went past IRCTC to become the most subscribed IPO so far this year. The IPO of Indian Railway Catering and Tourism Corporation (IRCTC) was subscribed 111.91 times in October.

Most brokerages had a 'subscribe' rating on the issue as it provides a variety of banking services in mass market customer segments with a focus on serving the financially unserved and underserved segments in India. They also said that the company's pan-India presence and technology-driven operating model with the advanced digital platforms are also key positives.

Ujjivan Small Finance Bank Limited (USFB), incorporated in 2017, is a mass-market focused Small Finance Bank (SFB). USFB Bank is promoted by Ujjivan Financial Services Limited (UFSL) which commenced operations as an NBFC in 2005. Ujjivan Small Finance Bank serves over 49 lakh customers through 552 branches spread across 232 districts in 24 states and union territories of India.

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First Published:Dec 12, 2019 10:02 AM IST