Ujjivan Small Finance Bank's $105 mln IPO gets massive investor response

Ujjivan Financial Services

04/12/2019 12:59

BENGALURU, Dec 4 (Reuters) - Shares of Ujjivan Small Finance
Bank were subscribed over 165 times on Wednesday, the final day
of its initial public offering through which the lender aims to
raise up to 7.50 billion rupees ($104.50 million). 
   Investors bid for 20.53 billion shares of the unit of listed
microfinance lender Ujjivan Financial Services  UJVF.NS 
compared with the 124 million shares on offer, stock exchange
data as of 1230 GMT showed https://www.nseindia.com/marketinfo/ipochart/ipochart.jsp?issue=UJJIVANSFBCUMUEQ&ir=I&cn=C&sd=D&cnlink=N.
 The company had set a price range of 36 rupees to 37 rupees.
    The public offering comes as the bank races to comply with
the Reserve Bank of India's requirement for small finance banks
to list its shares within three years of starting operations.
The deadline set for Ujjivan Small Finance Bank is Jan. 31.
    The lender plans to use the money raised from the IPO to
boost its capital. The bank's Tier-1 capital ratio, a key
measure of a bank's financial strength, stood at 18.16% as of
September end, according to its prospectus.
    The offering follows a bumper subscription and trading debut
on Wednesday by Kerala-based CSB Bank Ltd  CSBB.NS , whose
shares surged 53.9%.  urn:newsml:reuters.com:*:nL4N28E1E6
    Kotak Mahindra Capital Company Ltd, IIFL Securities Ltd and
JM Financial Ltd were the book running lead managers for Ujjivan
Small Finance Bank's public offering.
    
($1 = 71.7700 Indian rupees)

 (Reporting by Chris Thomas in Bengaluru; Editing by Arun
Koyyur)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695;))