Spandana Sphoorty Closes 1% Below IPO Price On Stock Market Debut

Microfinance lender Spandana Sphoorty Financial Ltd. made its stock market debut at a discount to its issue price.

The stock opened at Rs 825 apiece, nearly 4 percent lower than its initial public offering price of Rs 856, on the BSE. It finally closed 1 percent lower than its issue price at Rs 848.

The microfinance lender’s Rs 1,201-crore initial public offering was subscribed 1.05 times on the final day of bidding. The category reserved for qualified institutional buyers was subscribed 3.10 times, while the segment for non-institutional investors and retail individual investors subscribed 56 percent and 9 percent, respectively, according exchange data.

Spandana Sphoorty is the nation’s fourth-largest non-bank finance company-microfinance institution, with assets under management of Rs 4,437 crore as of June 30, according to its red herring prospectus. The rural-focused micro-lender has a diversified presence across the country. It offers loans under the joint liability group model, primarily to women from low-income households.

The Hyderabad-based company had said it plans to use the proceeds from the IPO to augment its capital base to meet future requirements and for general corporate purposes.