Ujjivan Small Finance Bank cracks 8%, a day after stellar stock market debut

NEW DELHI: Shares of Ujjivan Small Finance Bank slumped 8 per cent in Friday’s session as investors flocked to book profits after the scrip gained 51 per cent on the first day of trading on bourses on Thursday.

The stock was trading at Rs 52, down 6.98 per cent on BSE.

Amid much fanfare Ujjivan Small Finance Bank debuted on Thursday at a premium of 59 per cent. It, however, pared gains to end the day at Rs 55.90, up 51 per cent from the issue price.

After a bumper listing, analysts were worried about the valuation the stock achieved in debut trade. Most suggested booking profits and entering the stock only if there was a correction.

At 166 times, the IPO had recorded most subscription for a primary market offering of 2019.

Ujjivan SFB is among the 35-odd issues that got subscribed over 50 times in the last 12 years. It joined the league of 13 stocks that got listed with more than 50 per cent premium to issue price. Of these 13, half are now trading below their issue prices, while nine are at a discount to listing prices.

Its parent company, Ujjivan Financial Services was also trading down 1.81 per cent at Rs 322.65 on BSE. It has slipped about 3 per cent on Thursday.