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Last Updated : Aug 19, 2019 05:34 PM IST | Source: Moneycontrol.com

Spandana Sphoorty Financial closes with moderate discount at Rs 848.40

On the National Stock Exchange, it fell 0.14 percent to close at Rs 854.75 against issue price.

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Shares of microfinance lender Spandana Sphoorty Financial managed to trim losses as the day progressed and closed a tad below its issue price on August 19.

The stock closed at Rs 848.40 on the BSE, down 0.89 percent against issue price of Rs 856 and gained 2.96 percent against its opening price of Rs 824.

On the National Stock Exchange, it fell 0.14 percent to close at Rs 854.75 against issue price.

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The listing was on expected lines given tepid response to public issue, current market conditions and liquidity crisis in NBFCs, experts feel.

Payal Pandya, Assistant Vice President – Wealth Research at Centrum Broking, is positive on the stock for a long term perspective, considering the strong fundamentals of the company and the turnaround in the business.

Given the low penetration of financial services in rural India, the ability of MFIs to reach out to the hinterlands and SSFL's high operational efficiencies, she believes the company could have considerable scope for growth in the long term.

Successful exit from corporate debt restructuring (CDR) mechanism in Mar’17 (well ahead of the scheduled date of Mar’18), consistent profits along with a healthy asset book build confidence in the prospects, she added.

In terms of volumes, Spandana traded with 4.72 lakh shares on the BSE and 46.32 lakh shares on the NSE.

The Rs 1,200-crore initial public offering, which was opened for subscription during August 5-7, comprised a fresh issue of Rs 400 crore and an offer for sale of 93,56,725 equity shares.

The fresh issue proceeds would be used towards augmenting capital base, said the Hyderabad-based microfinance lender, which 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.

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First Published on Aug 19, 2019 05:33 pm
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