The IPO of microfinance player Ujjivan Financial Services has been oversubscribed 1.22 times during the morning trade on the last day of the offer.

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The Rs 885-crore public issue received bids for 3,61,64,170 shares against the total issue size of 2,96,63,706 shares, data available with the NSE till 1030 hours showed.

Ujjivan's issue, which is scheduled to close on Monday, comprises fresh issuance of shares worth Rs 358.16 crore and an offer for sale of up to 24,968,332 shares by the existing shareholders.

Price band for the offer has been fixed at Rs 207-210.

Ujjivan raised nearly Rs 265 crore from anchor investors by selling shares at a price of Rs 210 apiece.

The company, which has already received in-principle nod to set up a small finance bank, is the second microfinance firm to go public this fiscal. Another microfinance firm Equitas Holdings came out with its IPO last month.

This is also the third microfinance firm to go public.

The share sale would help Ujjivan bring down the foreign shareholding to around 45 per cent from the current 77 per cent, which is required as per RBI guidelines for setting up a small finance bank.

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