The initial public offer (IPO) of Ujjivan Small Finance Bank received more than 200% subscription on the second day of the issue today. At 12:00 pm, Ujiivan Small Finance Bank IPO was subscribed 2.43 times. IPO of Ujjivan Small Finance Bank received bids for 30.13 crore shares against the issue size of 12.39 crore shares in the afternoon session today. Bids for 21.09 crore shares were received at the cut off price of Rs 37. The price band for the IPO of small finance bank stood at Rs 36-Rs 37.
The bank which has its headoffice in Bengaluru plans to raise Rs 750 crore through the issue, which will close on December 4. The shares of the bank are likely to be listed on BSE and NSE on December 12. On Saturday, November 30, the bank raised Rs 303.75 crore from anchor investors. Anchor investors are institutional investors who are invited to subscribe to shares before an IPO opens.
The anchor investor route is used to raise the popularity of the IPO. Share sale to anchor investors at a fixed price helps make other investors confident and improve the demand for stock in primary market. Each anchor investor is required to invest a minimum of Rs 10 crore in the issue.
The bank finalised the allocation of 8,20,94,594 shares at Rs 37 apiece to 18 anchor investors. Government of Singapore, Monetary Authority of Singapore, CX Partners Fund, Aberdeen, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Sundaram Mutual Fund, Goldman Sachs India, ICICI Prudential participated in the anchor investor bidding, the bank said.
One can apply for the issue in a lot of 400 equity shares and in multiples of 400 shares thereafter. Lead managers for the IPO are IIFL Holdings Limited, JM Financial Consultants Private Limited and Kotak Mahindra Capital Company Limited.
Shareholders of the parent firm Ujjivan Financial Services Limited can place bids for the IPO at a discount of Rs 2 per equity share on the issue price.