Shares of Ujjivan Small Finance Bank Limited listed on the bourses and gained 51.08%. The company had tapped the capital markets with its fresh issue of Rs 750 crs in a price band of Rs 35-37. The company had earlier allotted 8,20,94,594 equity shares to 18 anchor investors comprising of 33 entities. The highest allocation was made to CX Partners Fund 2 Limited who was allotted 1,17,90,000 equity shares or 14.36% of the anchor allocation.

The issue had a reservation of Rs 75 crs for shareholders of the holding company, Ujjivan Financial Services Limited. Shareholders of the holding company applying in the shareholders reservation portion would get a discount of Rs 2 per share.

The issue saw QIB’s subscribing the issue 113.80 times, HNI’s 486.14 times, Retail investors 50.46 times and shareholder portion subscribed 4.26 times. The overall issue was subscribed 170.29 times. The issue received 16,47,003 applications and was subscribed 36.1 times on basis of lots.

The cost of funding for the leveraged HNI was Rs 27.60 to Rs 29.32, based on the interest or funding rate of 8-8.5%. The premium is slightly lower than the cost of funding and would have to adjust to that by the time the share lists.

The issue had opened on Monday the 2nd of December and closed on Wednesday the 4th of December 2019.

The discovered price on BSE was Rs 58 while it was Rs 58.75 on NSE. The traded volume at discovered price was 11.92 lacs and 240.85 lacs on NSE. The high was Rs 62.80 on both exchanges and the low was Rs 53.10 on BSE and Rs 53.05 on NSE. The closing price was Rs 55.90 on BSE, a gain of Rs 18.90 or 51.08% and Rs 55.95 on NSE, a gain of Rs 18.95 or 51.22%.

The traded volume was 161.32 lacs on BSE and 2514.14 lacs on NSE. The combined volume was 2675.47 lac shares which was 1.31 times the IPO size of 2038.16 lac shares. It was 2.19 times if one were to consider the non-anchor portion. Delivery volume was 929.79 lac shares which was 34.75% of the of the traded volume and 45.61% of the IPO size. It was 76.36% of the non-anchor portion. The weighted average of the day’s trade was Rs 57.48 on BSE and Rs 57.41 on NSE.

The closing price was below the average as a large portion of the day saw the share trading in the 54-57 price band. While the share closed with gains of more than 51%, all leveraged HNI investors have lost money as their cost of funding was Rs 28 and they effectively needed the share to trade at Rs 65, which never happened.

There were no names which appeared either on the buy sell side at the end of the day.

There could be some pressure on the stock price when trading begins on Friday. The fact that 76% of the shares have changed hands at Rs 57 indicates stronger hands coming into the counter, it’s a matter of time before the share trades higher than this average.