According to data from stock exchanges, as of 7 pm, the retail portion of IPO was subscribed 3.17 times.
The initial public offering (IPO) of Ujjivan Financial Services drew a huge response, with the issue receiving bids for 120.5 crore shares, about 41 times the total issue size of 2.96 crore shares, on the last day of the offer on Monday.
According to data from stock exchanges, as of 7 pm, the retail portion of IPO was subscribed 3.17 times.
The Rs 885 crore public issue of Ujjivan, which opened on April 28 comprises fresh issuance of shares worth Rs 358.16 crore and an offer for sale of up to 24.9 million shares by the existing shareholders.
The company has fixed a price band of Rs 207-210 per share.
On April 27, Ujjivan sold about 12.6 million shares to 17 domestic institutional investors (DIIs) at Rs 210 per share, the upper end of the price band for the IPO, as part of the anchor book allocation.
Investors such as Birla Sun Life Asset Management Co, ICICI Prudential Asset Management Co, Reliance Life Insurance Co and UTI Asset Management Co, among others, subscribed to the anchor book.
Ujjivan is the second small finance bank to go for an IPO. In April, another small finance bank licensee Equitas Holdings Ltd's Rs 2,176 crore IPO witnessed subscription of over 17 times.
The share sale will help Ujjivan bring down the foreign shareholding to around 45% from the current 77%, which is required as per the Reserve Bank of India (RBI) guidelines for setting up a small finance bank.
Foreign investors selling their shares through the IPO include World Bank arm International Finance Corp, impact investment funds Elevar and India Financial Inclusion Fund, Dutch development finance institution FMO, and Sarva Capital.
The company expects to start its small finance bank in the first quarter of 2017. Small finance banks will offer basic banking services, accept deposits and lend to unserved sections, including small business units, small and marginal farmers, micro and small industries, and entities in the unorganised sector.
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