Ujjivan Financial Services zooms over 100% against IPO issue price

The stock hit an intra-day high of Rs 427, appreciated more than 100% against its initial public offer price of Rs 210 per share.

Shares of microfinance lender Ujjivan Financial Services moved higher to Rs 427 on the BSE, appreciating more than 100% against its initial public offer (IPO) price of Rs 210 per share. 

The stock hit its highest level since listing on May 10 this year. The S&P BSE Sensex was up 5.5% during the same period.

Ujjivan Financial Services on Tuesday informed BSE that rating agencies CARE and ICRA have upgraded the credit ratings of various facilities / instruments of the company.

“CARE upgraded the long term bank facilities from Rs 3,500 crore 'CARE A' to Rs 4,500 crore ‘CARE A+’, while, Rs 90 crores non convertible debentures (NCD) upgraded to ICRA A+ (pronounced ICRA A Plus) from ICRA A,” Ujjivan Financial Services said in a statement.

Rs 37.5 crores NCD (reduced from Rs 75 crore) upgraded to "ICRA A+" (pronounced ICRA A Plus)" from "ICRA A-" (pronounced ICRA A Minus)”, it added.

“The ratings upgrades factor in the improvement in Ujjivan’s capitalisation profile pursuant to the equity infusion of about Rs 650 crore received by the company over the last few months (about Rs 358 crore through IPO and the remaining through a pre-IPO issue), subsequent to which the networth of the company has increased to about Rs 1,550 crore (provisional) as in May 2016,” ICRA said in a release.

The upgrade also factors in the expected improvement in Ujjivan’s business risk profile post conversion into a small finance bank (SFB), it added. LINK

At 11:10 AM, the stock was up 1.4% at Rs 423 on the BSE. A combined 1.25 million shares changed hands on the counter on the BSE and NSE so far.