Ujjivan Financial Services makes strong stock-market debut

Image: V Sathish for Forbes India

Ujjivan was set up by veteran banker Samit Ghosh as a non-banking financial company (NBFC) in 2005

Shares of microfinance player Ujjivan Financial Services closed at Rs 231.6, up 10.29 percent over its issue price of Rs 210 per share, on the BSE on Tuesday. This is the second microfinance company to be listed on the bourses this financial year after Equitas Holdings.

Bengaluru-based Ujjivan’s Rs 885-crore initial public offering (IPO) was oversubscribed nearly 41 times, when it closed on May 2. Its price band was fixed at Rs 201-207 per share. The issue comprised fresh issuance of shares worth Rs 358.16 crore and an offer for sale of up to 24,968,332 shares by existing shareholders.

Ujjivan, set up by veteran banker Samit Ghosh as a non-banking financial company (NBFC) in 2005, now serves over 2.77 million active customers through 470 branches and 7,862 employees in 24 states and 209 districts across India.

Last September, Ujjivan got an in-principle approval from the Reserve Bank of India to transform itself into a small finance bank (SFB).

Ujjivan and Equitas now join SKS Microfinance (now renamed Bharat Financial Inclusion Ltd) as India’s listed microfinance companies.