<article>Small finance bank licensee <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Ujjivan+Financial+Services+Ltd">Ujjivan Financial Services Ltd </a>on Monday saw its initial public offering (IPO) fully subscribed, on the last day of the offer.</article>

Small finance bank licensee <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Ujjivan+Financial+Services+Ltd">Ujjivan Financial Services Ltd </a>on Monday saw its initial public offering (IPO) fully subscribed, on the last day of the offer.
According to data from stock exchanges, as of 10.30am, the Ujjivan IPO was subscribed 1.22 times or 122%, led by the retail and high net-worth individuals category. The institutional investors category saw a subscription of 67%.
The Rs.885 crore public issue of Ujjivan, which opened on 28 April comprises fresh issuance of shares worth Rs.358.16 crore and an offer for sale of up to 24.9 million shares by the existing shareholders.
The company has fixed a price band of Rs.207-210 per share.
On 27 April, Ujjivan sold about 12.6 million shares to 17 domestic institutional investors (DIIs) at Rs.210 per share, the upper end of the price band for the IPO, as part of the anchor book allocation.
Investors such as Birla Sun Life Asset Management Co. Ltd, ICICI Prudential Asset Management Co. Ltd, Reliance Life Insurance Co. Ltd and UTI Asset Management Co. Ltd, among others, subscribed to the anchor book.
The anchor book is that portion of the IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.
Ujjivan is the second small finance bank IPO. In April, another small finance bank licensee Equitas Holdings Ltd’sRs.2,176 crore IPO witnessed subscription of over 17 times.
The share sale will help Ujjivan bring down the foreign shareholding to around 45% from the current 77%, which is required as per the Reserve Bank of India (RBI) guidelines for setting up a small finance bank.
Foreign investors selling their shares through the IPO include World Bank arm International Finance Corp., impact investment funds Elevar and India Financial Inclusion Fund, Dutch development finance institution FMO, Sarva Capital, Women’s World Banking Capital Partners, Wolfensohn Capital Partners and Mauritius Unitus Corp.
In February, Ujjivan raised fresh capital to the tune of Rs.292 crore in a so-called pre-IPO round. The company expects to start its small finance bank operations in the first quarter of 2017, the company said.
Small finance banks will offer basic banking services, accept deposits and lend to unserved sections, including small business units, small and marginal farmers, micro and small industries, and entities in the unorganized sector.
For the nine months ended December 2015, Ujjivan reported a profit of Rs.122.3 crore on revenue of Rs.729.6 crore.
As of 31 December, the company served over 2.77 million active customers through 470 branches across 209 districts. Ujjivan’s assets under management stood at Rs.4,589 crore. The company is present in 24 states.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/ujjivan-raises-rs264-74-crore-through-anchor-allotment-39011/">India: Ujjivan IPO raises about $40m from anchor investors</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/after-equitass-stellar-listing-will-ujjivan-follow-suit-38931/">India: Will MFI-to-small finance bank Ujjivan’s debut mirror Equitas’ stellar listing?</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/38445-38445/">IPO-bound Indian MFI lender Ujjivan to launch small finance bank in 2017</a>
<h4 style="text-align: justify;">This story was first published on <a href="http://www.livemint.com">livemint.com</a></h4>

India: Small finance bank licensee Ujjivan’s IPO fully subscribed

India: Small finance bank licensee Ujjivan’s IPO fully subscribed

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