Shares of Ujjivan Small Finance Bank rallied as much as 70% after the lender raised funds in the most-subscribed Initial Public Offering (IPO) of 2019. Ujjivan Financial Services diluted its stake in the small finance bank from 94.4% to 80% through the IPO. Ujjivan Small Finance Bank has to reduce its promoter shareholding to 40% by February 2022.
Investor demand exceeded shares on offer by 166 times as the lender got bids for 20.53 billion shares versus an issue size of 124 million shares. The shares were sold in a price band of 36-37 rupees each.
Ujjivan Small Finance Bank’s stellar listing extends the streak of robust returns logged by new entrants this year. Indian Railway Catering & Tourism Corp’s initial share sale in October attracted bids for 112 times the offer size and the stock went on list at double the sale price.