Ujjivan Financial Services is in the limelight today and not much in the positive way. The stock opened at a loss of almost 7% at Rs.265, going down to an intraday low at Rs.261.70, down 8%.
The mood on the counter is negative at the moment as the market is not happy with its plan to take its subsidiary, Ujjivan Small Finance Bank public. The company on August 16 filed a draft red herring prospectus with SEBI and plans to raise Rs.1200 crore.
The bank may dilute a stake of about 15% and get a valuation of Rs 8,000 crore.
The listing is being viewed negatively as it will lead to dilution and holding company discount for the existing shareholder.