Reflecting upbeat investor sentiment, the IPO of microfinance player Ujjivan Financial Services was oversubscribed nearly 41 times on the last day of bidding today. The Rs 885-crore public issue received bids for 1,20,62,70,590 shares against the total issue size of 2,96,63,706 shares, reflecting 40.66 times subscription, as per NSE data till 1930 hrs. The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 34.33 times, while bids from non-institutional investors were 136.25 times the shares on offer for the category, sources said.
Retail investors category was oversubscribed 3.99 times, they added. The figures are based on the upper price band of Rs 210. This was the second IPO in less than a week to draw strong investor response.
Last week, Thyrocare Technologies’ IPO witnessed strong investor demand and was oversubscribed 73.55 times on Friday. Ujjivan’s issue comprised fresh issuance of shares worth Rs 358.16 crore and an offer for sale of up to 24,968,332 shares by the existing shareholders. Price band for the offer was fixed at Rs 207-210.
Ujjivan raised nearly Rs 265 crore from anchor investors by selling shares at a price of Rs 210 apiece. The company, which has already received in-principle nod to set up a small finance bank, is the second microfinance firm to go public this fiscal. Another microfinance firm Equitas Holdings came out with its IPO last month.
This is also the third microfinance firm to go public. The share sale would help Ujjivan bring down the foreign shareholding to around 45 per cent from the current 77 per cent, which is required as per RBI guidelines for setting up a small finance bank. The issue is being managed by Kotak Mahindra Capital Company, Axis Capital, ICICI Securities and IIFL Holdings.