Spandana Sphoorty Financial IPO subscribed 1.05 times on final day

The initial public offering (IPO) by microfinance lender Spandana Sphoorty Financial got fully subscribed on August 7, the final day of the issue, led by support from qualified institutional buyers.

The Rs 1,200-crore public issue received bids for 1.03 crore equity shares against a size of 98.22 lakh equity shares (excluding anchor investors portion), resulting in the IPO being subscribed 1.05 times, as per data available on exchanges.

The portion reserved for qualified institutional buyers subscribed 3.11 times, while non-institutional investors received 55 percent subscription and retail 9 percent.

The IPO comprises a fresh issue of Rs 400 crore and an offer for sale of 93,56,725 equity shares, including anchor portion of 42,08,886 equity shares. Spandana Sphoorty Financial has already raised Rs 360.28 crore from 18 anchor investors.

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The company will use the fresh issue proceeds towards augmenting its capital base. The price range for the offer, which opened on August 5, has been fixed at Rs 853-856 per share.

The Hyderabad-based Spandana Sphoorty, a two-decade old geographically diversified and rural-focused NBFC microfinance institution, offers small-ticket unsecured loans to women in the low-income bracket in rural and urban areas. It provides income-generation loans, business loans and loans against gold jewellery.

Most brokerages advised subscribing the issue with a long-term perspective. “We believe Spandana Sphoorty Financial Ltd (SSF) IPO provides good scope of growth as well as a favourable investment opportunity in MFI space for long term investors,” said Mehta Equities, recommending investors to subscribe for long-term basis only.

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