Ujjivan Small Finance Bank has made a fantastic debut today morning. As against the IPO price of Rs.37, it got listed on the BSE at Rs.58, going up to Rs.62.80. It has come off the high point and is now traded at Rs.53 levels, nevertheless a bumper price vis-à-vis the IPO price.
The IPO had received a fantastic response as it was subscribed 166 times, with HNIs portion subscribing 473 times, followed by QIPs at 111 times an retail investors at 49 times.
In our New Issue Analysis, we had given a very strong ‘subscribe’ and had said, “Post IPO, since both parent Ujjivan Financial and subsidiary Ujjivan SFB will be listed, Ujjivan Financial’s share price will mirror Ujjivan SFB’s price movement, adjusted for a holding company discount. Currently, this discount stands at 22.5%, which may narrow post listing, if share price of Ujjivan SFB increases. Hence, one can also take a long position in Ujjivan Financial to ride the opportunity, if one misses out on allotment in the IPO. Over the long term though, Ujjivan Financial shares may get culminated into the operating company i.e. Ujjivan SFB.”