Microfinance player Ujjivan Financial Services made a decent debut at the bourses on Tuesday. As against the issue price of Rs 210, the stock climbed to a high of Rs 244.65 during initial hours.

Ujjivan Financial Services' IPO saw a strong response of nearly 41 times from investors. The Rs 885-crore issue, which was opened for subscription between April 28-May 2 at a price band of Rs. 207-210, opened at Rs 231.90 on the NSE. It touched a low of Rs 216.65 in early deals.

The shares ended up by 0.22 per cent at Rs 232.40.

The microfinance player had raised Rs 265 crore from anchor investors by selling shares at Rs 210 a share. The anchor investors include Birla Sun Life Mutual Fund, ICICI Prudential Mutual Fund, Reliance Life Insurance, Reliance Mutual Fund, UTI Mutual Fund, Canara Robeco Mutual Fund, LIC Nomura Mutual Fund and HDFC Standard Life Insurance.

Ujjivan’s issue comprised fresh issuance of shares worth Rs. 358.16 crore and an offer for sale of up to 24,68,332 shares by the existing shareholders.

The company has received an in-principle nod from RBI to set up a small finance bank.

The company plans to utilise the funds for augmenting capital base to meet the future capital requirements and general corporate purpose.

The issue was managed by Kotak Mahindra Capital Company, Axis Capital, ICICI Securities and IIFL Holdings.

However, shares of the other recently listed microfinance firm Equitas Holdings slipped 1.8 per cent to Rs 140.3 on the NSE on Tuesday.

Thyrocare Technologies, which made a strong debut on Monday, also slipped 3.44 per cent at Rs 597.50 on the NSE.

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