MUMBAI, DECEMBER 12, 2019 (GPN) : Ujjivan Small Finance Bank (USFB), which caters to the unbanked urban poor and young middle class customers, on Thursday delivered windfall gains to investors as it listed at Rs 58 on the Bombay Stock Exchange (BSE), against its issue price of Rs 37, a premium of about 60 per cent.

The stock made a high of Rs 62.8 and a low of Rs 53.1 on the BSE and closed at Rs 55.35.

On the National Stock Exchange (NSE), the stock opened at Rs 58.75, while it made a high and a low of Rs 62.8 and Rs 53.05 respectively and closed at Rs 55.40.

Nitin Chugh, MD and CEO of USFB said he was truly overwhelmed and humbled to have witnessed such a strong opening of USFB’s stock at NSE after a record 170 times oversubscription of the IPO.

“We thank the investors for expressing their confidence in us. We also stand firmly in our resolve to serve the unserved and underserved segments of the aspiring middle class in India. We are grateful to our partners and customers who have been a part of this most satisfying journey, with us,” Chugh said.

The Initial Public offering of USFB was subscribed a massive 170.24 times and witnessed an unprecedented demand of over Rs 75,000 crore as against the issue size of Rs 750 crore. The IPO recorded most subscription for a primary market offering of 2019.

Vikram Limaye, MD and CEO of NSE, speaking at the listing ceremony of USFB, said financial inclusion is a national priority and small finance banks have been at the forefront of empowering people by enabling access to financial services.

“The successful listing of Ujjivan Small Finance Bank on NSE marks an important milestone for the bank as well as the overall financial services sector. Despite the recent turmoil, the listing reflects the strong belief of the investor community in the underlying growth potential of the segment. With this listing, we have taken a step further in strengthening our relationship with the Ujjivan group. Ujjivan Financial Services Ltd is listed on NSE and is traded on different NIFTY indices such as NIFTY 500,” Limaye said. ENDS

About Ujjivan Small Finance Bank Limited (USFB)

USFB is a mass market focused SFB in India, catering to unserved and underserved segments and committed to building financial inclusion in the country. Its Promoter UFSL, commenced operations as an NBFC in 2005 with the mission to provide a full range of financial services to the ‘economically active poor’ who were not adequately served by financial institutions. UFSL’s erstwhile business was primarily based on the joint liability group-lending model for providing collateral-free, small ticket-size loans to economically active poor women. UFSL also offered individual loans to Micro and Small Enterprises (“MSEs”) and adopted an integrated approach to lending, which combined a customer touchpoint similar to microfinance, with the technology infrastructure and related back-end support functions similar to that of a retail bank.

Among the leading SFBs in India, Ujjivan Small Finance Bank Limited had the most diversified portfolio, spread across 24 states and union territories as of March 31, 2019, according to a CRISIL report. As of June 30, 2019, the bank served 4.72 million customers and operated from 474 Banking Outlets that included 120 Banking Outlets in Unbanked Rural Centres (“URCs”) (of which seven were business correspondent centres) and additionally operated 50 Asset Centres. In Fiscal 2019 alone, the bank operationalized 287 Banking Outlets. As of June 30, 2019, Ujjivan Small Finance Bank Limited had a network of 387 ATMs (including nine ACRs), two 24/7 phone banking units based in Bengaluru and Pune that service customers in 11 languages, and a mobile banking application that is accessible in five languages as well as internet banking facility for individual and corporate customers.