Homemarket Newsstocks News

    Spandana Sphoorty Financial shares erase losses, rise 23% from day's low

    Spandana Sphoorty Financial shares erase losses, rise 23% from day's low

    Spandana Sphoorty Financial shares erase losses, rise 23% from day's low
    Profile image

    By Mousumi Paul   IST (Updated)

    Mini

    Most brokerages had recommended subscribing to the Spandana Sphoorty IPO with a long term perspective.

    Shares of microfinance lender Spandana Sphoorty Financial erased losses to ended 0.9 percent lower on Monday after listing at 3.6 percent discount to its listing price of Rs 856 per share. The company's shares opened at Rs 824 per share on the BSE.
    In intraday deals, the stock price fell as much as 16.1 percent from its listing price to Rs 690 per share. The stock trimmed losses and rose 23 percent to end at Rs 848.40, down 0.9 percent from its listing price. It hit a high of Rs 866 per share during the day on BSE.
    The Rs 1,200 crore Spandana Sphoorty IPO was was oversubscribed 1.05 times last week. The IPO comprised a fresh issue of Rs 400 crore and an offer for sale of 93,56,725 shares including anchor portion of 42,08,886 shares.
    Most brokerages had recommended subscribing to the issue with a long term perspective.
    "The company's successful exit from corporate debt restructuring (CDR) mechanism in March 2017 (well ahead of the scheduled date of Mar’18), consistent profits along with a healthy asset book, builds confidence in the prospects," Centrum Capital said in a note.
    "The company has maintained a strong track record of financial and operational efficiencies over the years through high rates of customer retention, geographical expansion, improved staff productivity, lower credit cost and growth in customer base led by branch expansion," Geojit Financial Services noted.
    The net proceeds from the fresh issue are proposed to be utilised towards augmenting the company's capital base to meet future requirements and for general corporate purposes, the company had said last week.
    Axis Capital, ICICI Securities, IIFL Securities, JM Financial, IndusInd Bank and YES Securities India were the managers to the offer.
    The company offers income generation loans under the joint liability group model, predominantly to women from low-income households in rural areas.
    Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng