Ujjivan Financial IPO Subscribed 21% on Day One
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