Ujjivan makes strong debut at bourses; stocks up over 10%

Shares of microfinance player Ujjivan Financial Services on Tuesday made a strong debut at the bourses, surging more than 10% over the issue price of Rs 210.

The stock listed at Rs 227, soaring 8% compared with the issue price on the Bombay Stock Exchange (BSE). It later touched a high of Rs 244, reflecting a sharp gain of 16.19%.

At the National Stock Exchange (NSE), the stock debuted at Rs 231.90, rising by 10.42%.

The company's market valuation stands at Rs 2,836.61 crore.

The Rs 885-crore IPO of Ujjivan Financial Services was oversubscribed nearly 41 times earlier this month. Ujjivan's issue comprised fresh issuance of shares worth Rs 358.16 crore and an offer for sale (OFS) of up to 24,968,332 shares by the existing shareholders.

The price band for the offer was fixed at Rs 207-210 and was open for subscription during April 28-May 2.

The company, which has already received an in-principle nod to set up a small finance bank (SFB), is the second microfinance firm to go public this fiscal. Another microfinance firm Equitas Holdings came out with its initial public offering (IPO) last month. This is also the third microfinance firm to go public.

The issue was managed by Kotak Mahindra Capital Company, Axis Capital, ICICI Securities and IIFL Holdings. 

At 11:33 hours, the shares of Ujjivan Financial Services were trading up 12.76% or Rs 26.80 at Rs 236.80 per scrip on the BSE.