There was a new listing on the bourses today – Spandana Sphoorty. As against the IPO price of Rs.856, it got listed on the BSE at Rs.824, with the high point of the day till now at Rs.849.
The IPO had received a tepid response and it was largely expected to list at a discount.
The IPO was subscribed 1.05 times and QIBs portion was subscribed 3.10 times, with HNIs at 56% and Retail individual investors at 9%.
Spandana Sphoorty is India’s fourth largest micro finance institution (MFI), with gross AUM of Rs. 4,437 crore (31-3-19), 92% of which is lent in rural areas, to 2.46 million active borrowers, served by 7,060 employees across 929 branches in 16 states and 1 union territory. However, over 70% of this portfolio is concentrated in 5 states alone - Madhya Pradesh (20%), Odisha (20%) Karnataka (13%), Maharashtra (11%) and Chattisgarh (9%).