Backed by RBI license to start a Small Finance Bank (SFB), Bangalore-based Ujjivan adn Chennai-based Equitas have hit the IPO route this year to make a winning streak in collecting more than expected funds from the public and now they are swaying the markets.
Ujjivan Financial Services shares rallied at 20% reaching to Rs 400 on Friday, while its Chennai counterpart Equitas too made an equally impressive rally, scoring 70% above its offer price of Rs.110 and listed on April 21 this year.
Ujjivan shares, which were listed at Rs.210 last month, reached Rs.395 on Friday morning, riding on good performance in its microfinance lending activities in the last fiscal year. Ujjivan reported 134% in net profit at Rs 177 crore, compared to Rs 77 crore last FY2015.
In Financial Year 2015-16, Ujjivan reported 68% rise to Rs 1,028 crore and 82% rise in its net interest income to Rs 510 crore, almost doubling its figures in one year, showing a steep upward growth in a stagnant market for big firms.
Ujjivan Financial is likely to start its Small Finance Bank from April 1, 2017.