Shares of micro-finance institution Spandana Sphoorty Financial, which made its debut on the bourses on Monday, fell below the issue price even as benchmark indices posted marginal gains.
On the BSE, the shares listed at ₹824 before falling to a low of ₹690, which was almost 20% lower than the issue price of ₹856. While the shares did manage to recover from the lows to touch a high of ₹865, it ended the day at ₹848.40 with about 4.72 lakh shares changing hands.
On the NSE, it closed at ₹854.75 with 46.32 lakh shares being traded. At Monday’s closing price on the BSE, market capitalisation of the firm was pegged at almost ₹5,445 crore.
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The initial public offer, which closed for subscription on August 7, managed to get fully subscribed on the back of a strong response from institutional investors, even as retail and high networth investors chose to stay away.
While the overall issue was subscribed 1.05 times, the portion reserved for institutional investors was subscribed 3.11 times, with the segments for retail investor and high net worth individuals remaining undersubscribed.
The lacklustre response from retail investors was seen even as many brokerages, including Motilal Oswal Financial Services, Emkay Global, Centrum, Prabhudas Lilladher and Angel Broking, among others, recommended subscribing to the issue with a long-term investment horizon.
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