From an idea to its listing: How the Ujjivan Small Finance Bank IPO story unfolded
RBI green flag: October 7, 2015
Ujjivan received in-principle approval from the Reserve Bank of India on October 7, 2015 to set up a small finance bank. Ujjivan planned to start operations in the first quarter of the next calendar year, as reported by Mint on 29 September.
RBI’s licensing agreement mandated the bank to get listed as well within three years of operation with the deadline expiring in January, 2020. Under the licensing norms, promoter Ujjivan Financial Services’ stake in the lender will fall to 40 per cent by January, 2022, 30 per cent by January, 2027 and eventually to 15 per cent by January, 2032. The company is diluting about 11 per cent (94.4% to 83.32%) through the IPO and plans to use other instruments to offload another 3-5 per cent in next six months, indicating that it expects a post-issue valuation higher than that of the holding company’s.
Final licence: November 14, 2016
Ujjivan Financial Services said that it has received the final licence from Reserve Bank of India on 14th November 2016 to start a small finance ban
Draft prospectus: August 14, 2019
The bank filed its draft prospectus for the IPO on August 14, 2019 with Securities and Exchange Board of India.
Sebi go ahead: October 22, 2019
Ujjivan Small Finance Bank received market regulator Sebi's go-ahead to raise Rs 1,200 crore through an initial public offer (IPO).
Subscription begins: December 2, 2019
The initial public offering (IPO) of Ujjivan Small Finance Bank was subscribed 1.62 times on the first day of bidding on Monday. The IPO received bids for 20,14,25,600 shares against the total issue size of 12,39,58,333 shares, translating into a subscription of 1.62 times, according to data available with the National Stock Exchange (NSE).
Subscription Day 2: December 3, 2019
The initial public offer of Ujjivan Small Finance Bank was subscribed 4.86 times on the second day of subscription on Tuesday. The Rs 750 crore initial public offer (IPO) received bids for 60,29,84,400 shares against the total issue size of 12,39,58,333 shares, as per data available with the NSE.
Subscription Day 3: December 4, 2019
The initial public offer (IPO) of Ujjivan Small Finance Bank was subscribed 166 times on the final day of bidding on December 4. The IPO received bids for 2,053.5 crore shares against the issue size of 12.39 crore shares.
Basis of Allotment: December 9, 2019
The basis of allotment of Ujjivan Small Finance Bank shares was finalised on 9th December 2019. So far as the allotment to retail invests is concerned, it is likely to be done on the basis of a lottery. The registrar tries to allot at least one lot to every retail applicant. If the number of retail applications is still more than that then successful allottees are finalised based on a lottery. The retail segment of the IPO was subscribed 111 times.
Initiation of Refund: December 10, 2019
Amount refunded to subscribers who were not allotted shares.
Credit of shares to account: December 11, 2019
Successful investors will get the shares credited into their demat accounts on December 11 (Wednesday) by end of the day.
Listing date: December 12, 2019
The proposed date of listing of Ujjivan Small Finance Bank shares is December 12 (Thursday). The stock is expected to list at a premium of up to 73% over issue price.