Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

IPO News

11,646.9060.55
Stock Analysis, IPO, Mutual Funds, Bonds & More

Spandana Sphoorty IPO subscribed 6% on Day 1

On Friday, the lender raised around Rs 360.28 crore from 18 anchor investors.

ETMarkets.com|
Updated: Aug 05, 2019, 07.32 PM IST
0Comments
Getty Images
IPO3-Getty-1200
Analysts noted that the rural-focused MFI had in March 2017 exited from a corporate debt restructuring (CDR) mechanism, well ahead of the scheduled date of March 2018.
NEW DELHI: The Rs 1,200 crore initial public offering (IPO) by Spandana Sphoorty Financial got off to a tepid start on Monday amid a global market selloff. The IPO received bids for 5,71,285 shares against the total issue size of 98,22,367 shares.

Quota for qualified institutional buyers (QIBs) was subscribed 19 per cent.

On Friday, the lender raised around Rs 360.28 crore from 18 anchor investors, including Wells Fargo Emerging Markets Equity Fund, Florida Retirement System, Bajaj Allianz Life Insurance company, among others.

At the upper end of the price band, the issue is demanding valuation at price-to-adjusted book value (P/ABV) of 2.4 times. Peers such as Creditaccess Grameen trades at P/ABV of 3.4 times while Satin Credit Care commands 1.1 times.

Analysts noted that the rural-focused MFI had in March 2017 exited from a corporate debt restructuring (CDR) mechanism, well ahead of the scheduled date of March 2018.

They believe that the microfinance company has the scope to deliver healthy growth, but prevailing market conditions are against microfinance companies and, hence, they advised investors to consider the IPO only from a long-term perspective.

Also Read

Railways protest over under-pricing of IRCTC IPO

CSB Bank gets Sebi's go-ahead for IPO

Shareholders of UTI AMC to pare stake via IPO

Mukesh Trends Life Style files papers for IPO

At private Silicon Valley summit, no love for IPOs or banks

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service