Ujji­van Fi­nan­cial IPO Sub­scribed 21% on Day One

The Economic Times - - Smart -

timesin­ter­net.in ETMar­kets.com: The ini­tial public of­fer­ing (IPO) by Ujji­van Fi­nan­cial Ser­vices kicked off on Thurs­day with the is­sue re­ceiv­ing bids for 21% of the to­tal is­sue size on Day 1.

Ac­cord­ing to data avail­able with NSE, the is­sue has re­ceived cu­mu­la­tive bids for 62.49 lakh shares against the to­tal is­sue size of 2.96 crore shares.

On NSE, the quota for re­tail in­di­vid­ual in­vestors (RIIs) was sub­scribed 20% of the quota limit. The non-in­sti­tu­tional in­vestor (NII) quota wit­nessed bids for 1.85 lakh shares, which was around 3% of the to­tal quota limit of 63.40 l akh shares. Qual­i­fied in­sti­tu­tional buy­ers (QIB) were yet to bid for the is­sue.

On BSE, the re­tail in­di­vid­ual in­vestors quota was sub­scribed 20% and NII quota by 1.96%. QIBs bid for 48,090 shares on BSE.

A quota of up to 35% of the ₹ 880 crore is­sue (at up­per price band) is re­served for re­tail in­vestors.

Many bro­ker­ages have given a ‘sub­scribe’ rat­ing on the is­sue, say­ing the IPO val­u­a­tion looks rea­son­able and the com­pany has po­ten­tial to de­liver strong growth and re­turn on as­sets, even af­ter its con­ver­sion into small fi­nance bank.

“At the up­per band of the price band at ₹ 210, UFSL will trade at 1.6 times the pro­jected book value of nearly ₹ 130 (post-is­sue) which we be­lieve is fairly priced. We rec­om­mend in­vestors to s ub­scri be to t he i s s ue, ” s a i d Prab­hu­das Lil­lad­her in a note.

Ac­cord­ing to NSE data, the is­sue has re­ceived cu­mu­la­tive bids for 62.49 lakh shares

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