The opening date of the IPO is December 2, 2019. The price band is fixed at Rs. 36-37 and the lot size is 400 shares. The proceeds to be generated from IPO are Rs. 750 crore. This is a three-day share sale opened for subscription will close on December 4. Fresh equity shares of Rs.750 crore shall be issued and subscription of Rs. 75 crores shall be reserved for eligible shareholders of Ujjivan Financial Services. The existing shareholders shall enjoy a discount of Rs. 2 per share to the final issue price.
The allotment is expected to be completed by 9th December. The shares shall be listed on BSE and NSE by 12th December. The registrar to the issue is Karvy Fintech Private Limited and the book running lead managers are Kotak Mahindra Capital Company Ltd, IIFL Securities Ltd and JM Financial limited. The objective of the IPO is to augment its tier-1 capital base for meeting future capital requirements. The holding of promoters post issue will be of 83% that is a sale of 11% stake shall take place.
It is amongst the leading small finance banks in India. It is recommended by the experts to subscribe for long terms and listing gains.