Ujjivan Small Bank IPO – Should you apply? Details must know before applying to the IPO.

Ujjivan small bank ipo cover image

Ujjivan Small Finance Bank IPO Issue Details:

IPO date:                      02 Dec – 04 December 2019
Issue Size:                    750 Cr
Offer Price:                  Rs 36 – Rs 37 Per Equity Share
Market Lot:                  400 Shares & multiples
Exchange Listing:       BSE, NSE

IPO Timelines (tentative dates):

Allotment & refund:    10 Dec
Credit to Demat:           11 Dec
Listing on Exchange:   12 Dec

Company Promoters: Ujjivan Financial Services Limited (UFSL)

Objective of the Issue: Bank’s future capital requirements

IPO Registrar: Karvy computershare pvt. ltd.

Company Overview:

  • Started in 2017, Ujjivan small bank offers small finance to underserved & unserved segments in India.
  • Basically offers small size loan products to economically poor women, individual loans to Micro and Small Enterprises (MSEs).
  • Wide PAN-India presence across 24 states in India.
  • The company website: https://www.ujjivansfb.in/

Ujjivan Small Bank IPO Analysis (Review)

Financial Performance:

Ujjivan small finance bank ipo financials

valuations as on 31st Mar 2019:

1. Earning per share (EPS): 1.20
2. Price to Earning ratio (P/E): 30

Company category:  fast-grower

Company Strength:

  • High scope for growth due to serving mass-market segment of unserved and underserved.
  • Pan-India presence with digitally advanced platform
  • Prominent financial growth in last 2 years and similar expectation in upcoming years.

Peer Comparison: 

Ujjivan small bank ipo peer comparison

small bank midcaps on FPI radar

Analysis Conclusion:

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  • Prominent financial growth, Positive Bank IPO sentiment, increased FPI holdings in NBFC in last couple of months are plus.
  • GMP (Grey Market Premium) is around 15 Rs as of 28th Nov. If we calculate as per GMP, the listing gain may be around 4000 to 7000 Rs per application.
  • Considering all factors, my personal view is apply ‘Positive for listing gain.

BullRun IPO-India Ratings:  3.5 stars (out of 5 Stars)

Ujjivan Small Bank Analysis video link: https://youtu.be/OodNY3kKjDs

Ujjivan Bank IPO Allotment Check:

Ujjivan Bank Subscription Status:

Ujjivan small bank IPO subscription figures

Abbreviations:

EPS – Earning per share
OFS – Offer for Sale
P/E – Price to Earning
RoE – Return on Equity
QIB – Qualified Institutional Buyer
NII – Non-Institutional Investors
RII – Retail Individual Investor

Disclaimer & Conflict of Interest:

The above analysis is based on research of the company and RHP of CSB Bank. You should study more before taking any decision.

Analysis by –  NISM Certified Research Analyst & Investment Advisor.

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