Ujjivan Financial Services subsidiary set to launch IPO next week; share price up 5%
Ujjivan Financial Services already gained 18 percent in last 15 days and 50 percent in one year.
November 27, 2019 / 04:03 PM IST
Shares of Ujjivan Financial Services rallied 5 percent on November 27 after its subsidiary Ujjivan Small Finance Bank decided to launch its initial public issue next week.
The stock closed at Rs 324.05, up Rs 14.25, or 4.60 percent on the BSE. It already gained 18 percent in last 15 days and 50 percent in one year.
The initial public offering of Ujjivan Small Finance Bank will open on December 2, with a price band of Rs 36-37 per share.
Microfinance lender Ujjivan Financial Services is the holding company of Ujjivan Small Finance Bank.
The bank plans to raise Rs 750 crore through the fresh issue that will close on December 4.
The proposed issue includes a reservation of equity shares aggregating up to around Rs 75 crore for subscription by eligible shareholders of Ujjivan Financial Services. These shareholders will get shares at a discount of Rs 2 per share to the final issue price.
The bank reduced its issue size after fundraising in a pre-IPO placement of over 7.14 crore shares. It garnered Rs 250 crore in through pre-IPO route.
The bank in its RHP said proceeds of the fresh issue would be utilised towards augmenting its Tier – 1 capital base to meet future requirements, and issue expenses.