Ujjivan Small Finance Bank will make its market debut on December 12 after an overwhelming response for its Rs 750 crore initial public offering (IPO). The listing of Ujjivan Small Finance Bank is likely to bring an early Christmas bonanza for its subscribers, with many analysts expecting the stock to debut at 50 per cent premium over the issue price of Rs 37 per share.
Given the buzz in the grey market, the subscribers to the IPO of the Ujjivan Small Finance Bank are now eagerly waiting for the listing of the shares on the Bombay Stock Exchange and the National Stock Exchange.
According to market analysts, Ujjivan IPO has generated strong interest among investors. As a result, the grey market premium on the stock has increased to Rs 27 from Rs 10 earlier. A grey market is an over-the-counter market where dealers execute orders for stocks and bonds for preferred customers before they have been issued.
Santosh Meena, Senior Analyst, TradingBells said, "Grey market is suggesting a premium of Rs 27, which means a listing at around Rs 64. If we go through the overall picture then retail investors can make a listing gain of more than 50 per cent."
This means those who have been allocated the Ujjivan shares can make a gain of at least 50 per cent on the Ujjivan share debut. The subscribers can check their allotment status on the website of Karvy Fintech Private Limited or on the Bombay Stock Exchange. The IPO allotment status is available on the website and investor can check the same through application number, DPID/ Client ID or PAN card number.
The IPO, with a price band of Rs 36 to Rs 37 per equity share, opened for subscription on December 2 and closed on December 4. The IPO, which got fully subscribed on the first day itself, 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 state-owned Indian Railway Catering and Tourism Corporation (IRCTC), which saw 112 times subscription in October, 2019.
The total IPO size of Ujjivan Small Finance Bank was 12.39 crore shares, while it received bids for 2,053.5 crore share. The portion allocated for retail investors was subscribed 48.67 times, while the quota reserved for qualified institutional buyers and non institutional investors saw 110.72 times, 473 times subscription, respectively. Ahead of the IPO, Ujjivan Small Finance Bank raised Rs 250 crore in a pre-IPO round in November.