Shares of Ujjivan Small Finance Bank tumbled over 8 per cent in early trade on Friday, a day after making a strong debut on the Bombay Stock Exchange, as investors resorted to profit booking after a strong rally in the last session. In contrast, the BSE Sensex was trading 337 points higher at 40,919.
The share price of Ujjivan Small Finance Bank ended with a gain of 51 per cent on the listing day amid a surge in buying interest from investors after attracting bumper subscription of 166 times during initial public offering (IPO). The stock was listed at a premium of 56.75 per cent compared to the issue price of Rs 37 on the BSE. The stock rallied to hit a high of Rs 62.80 in the intra-day trade. On National Stock Exchange, Ujjivan Small Finance Bank stock made a listing gain of 58.78 per cent, opening at Rs 58.75.
Most of the brokerages had assigned 'subscribe' rating to the IPO citing its healthy balance sheet and stable asset quality.
Paring previous session gains, shares of Ujjivan Small Finance Bank declined as much as 8.49 per cent to touch a low of Rs 51.15 after opening marginally lower at Rs 55.75 against previous closing price of Rs 55.90 on the BSE.
In a similar trend, Ujjivan Small Finance Bank shares were trading 7.24 per cent lower at Rs 51.90 apiece on the National Stock Exchange. The shares touched a low of Rs 51.10 in earl deals after opening a tad lower at Rs 55.40 apiece.
Ujjivan's Rs 750 crore IPO, with a price band of Rs 36 to Rs 37 per equity share, has generated strong interest among investors. The IPO, which opened between December 2-4, was subscribed 165.68 times on the final day of the bidding process, making it the most successful share sale since January 2018. It left behind the Rs 645 crore IPO of Indian Railway Catering and Tourism Corporation (IRCTC), which was subscribed 112 times.
Edited by Chitranjan Kumar