The bank would use fresh issue proceeds of Rs 750 crore to augment its Tier – 1 capital base
Ujjivan Small Finance Bank gave allotment status for all categories of investors who invested money into its IPO.
The listing of shares will take place on December 12.
The proportion of allotment for retail investors is 35:1102 - which implies 35 bidders will be allotted shares out of every 1,102 applicants for IPO, Rudra Shares and Stock Brokers told Moneycontrol.
More than 1.87 crore equity shares (10 percent of total public issue size) were reserved for retail investors. The retail portion was oversubscribed by 49.09 times.
Overall, the Rs 750-crore public issue was subscribed nearly 166 times and around Rs 76,000 crore worth of shares were bid during December 2-4.
In the IPO, Ujjivan Small Finance Bank had also reserved Rs 75 crore worth of shares for shareholders of the parent company, Ujjivan Financial Services.
As the reserved portion for shareholders was subscribed only 4.12 times, the allotment status showed that the bidder who applied for 1 lot (i.e. 400 shares) has got all 400 shares, Rudra Shares and Stock Brokers said.
As per the above table, the bidder who had applied for 800 shares (2 lots) would receive 417 shares in the issue.
Among others, the portion set aside for HNIs (over 2.81 crore shares) was subscribed 473 times and QIB (over 5.62 crore shares) was subscribed 119.83 times.
The bank's IPO was launched mainly to comply with RBI norms to list within 3 years of receiving banking licence. Ujjivan Financial Services will dilute its stake in the bank from 94.4 percent to 80 percent post IPO.
"The promoter Ujjivan Financial Services will have to be further reduced to 40 percent by January 2022, 30 percent by January 2027 and eventually to 15 percent by January 2032 which requires dilution over the years and this dilution will also act as overhang on the stock post listing of shares," Ajcon Global said.The bank would use fresh issue proceeds of Rs 750 crore to augment its Tier – 1 capital base to meet the future capital requirements.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.