Ujjivan gets listed at premium

Yesterday, we had Thyrocare Tech making a smart debut on the bourses and today it is microfinance firm, Ujjivan Financial Services.

The stock got listed on the BSE at Rs.227, going up to Rs.230 and is now at Rs.228 levels.

The company has priced its IPO at the upper band at Rs.210 and this is a smart premium it got listed at.

The IPO had closed on 2nd May and it was subscribed 40.68 times.

Bengaluru based Ujjivan Financial is a microfinance company serving over 27.7 lakh customers, through its 470 branches pan India, enjoying a market share of 11.15% of India’s NBFC-MFI business. Having received an in-principle approval from RBI to set up a small finance bank (SFB), foreign shareholding in the company is to be brought down to 49% or less, by April 6, 2017, and hence existing foreign investors pruned their holding to ~44%, from 77.10%, via the concluded IPO.

In our New Issue Analysis, we had said, “Ujjivan IPO is attractively valued and investment is advised for listing gains, as also, with a MT view, due to its robust operating performance, professional management, good corporate governance and favourable industry dynamics. Go for it!”