Ujjivan Small Finance Bank IPO allotment status is now live. Investors who applied for shares in the IPO can check the status on the website of Karvy Fintech Private Limited or on the BSE.
Brokerages earlier told Moneycontrol that the allotment status would be finalised on December 9.
Karvy Fintech Private Limited is the registrar for the Ujjivan Small Finance Bank public issue. Subscribers can check their allotment status using their PAN number, DPID/client ID number or bid application number.
The client ID is a portfolio identification number. DP ID is depository participant ID. Demat account number is a combination of the DP ID and the customer ID of the Demat account holder.
Sources told Moneycontrol that the listing could be on December 12, 2019 and it may list with a premium of more than 50 percent over issue price of Rs 37 per share.
The initial public offering (IPO) of Ujjivan Small Finance Bank, the subsidiary of microfinance lender Ujjivan Financial Services Ltd, saw a massive subscription of 165.68 times. The issue saw the highest subscription among all IPOs since January 2018.
Ujjivan Small Finance had attracted huge subscriptions from all categories of investors because of its attractive valuation and strong asset quality.
"The IPO comes with PE of 16.5 which is half of its listed peer AU Small Finance Bank and PB of 2.3 where AU Small Finance Bank is trading at PB of 6.9. Apart from attractive valuations, the rural penetration of its promoter will help it to expand its banking services to PAN India," Santosh Meena, Senior Analyst at TradingBells told Moneycontrol.
"Grey market is suggesting a premium of Rs 27 means indicating a listing around Rs 64. If we go through the overall picture then retail investors can make a listing gain of more than 50 percent," he added.
The portion set aside for retail investors was subscribed 49.09 times. The reserved category of qualified institutional buyers saw a subscription of 110.72 times and that of non-institutional investors, 473 times.
The shares worth Rs 75 crore were also reserved for shareholders of Ujjivan Financial Services in the Ujjivan Small Finance Bank IPO, and that portion, too, has been oversubscribed by 4.14 times.
The IPO of Ujjivan SFB was primarily as an effort by the management to meet with the listing norms of the Reserve Bank of India (RBI), which calls for listing of a small finance bank within three years of the launch of operations.
Also, the RBI norms require the promoter UFSL to reduce its stake in Ujjivan SFB to 40 percent within a period of five years (i.e. by January 2022) from the date of commencement of business operations and, thereafter, further reduce its stake to 30 percent and 26 percent within a period of 10 years (i.e. by January 2027) and 12 years (i.e. by January 2029) respectively. Notably, after the IPO, the promoter's stake will reduce to about 84 percent from its current 94.4 percent.
With presence across 24 states and union territories, Ujjivan SFB offers a diverse range of products including loans to micro banking customers (group loans and individual loans), agriculture and allied loans, micro & small enterprise (MSE) loans, affordable housing loans, financial institutions group loans, personal loans, and vehicle loans. As of September 2019, company served 4.94 million customers and operated 552 banking outlets and had a network of 441 ATMs.
Reflecting solid growth, the company's gross advances grew from Rs 6,383.9 crore in FY17 to Rs 12,863.6 crore as of September 2019.
Driven by decent loan growth, the net interest income increased 28.5 percent YoY to Rs 1,106.4 crore in FY19 while the net interest margin improved to 10.93 percent from 10.31 percent in the previous year.
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