Abans Holdings, financial services subsidiary of the Abans Group, made a lackluster D-Street debut on December 23. The stock started trading at Rs 273 on the NSE and Rs 270 on the BSE. The issue price was Rs 270.
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The public issue was subscribed 1.10 times between December 12-15. It received bids for 1.40 crore shares against 1.28 crore on the offer. Qualified institutional buyers subscribed to 4.1 times the allotted quota, high networth individuals bought 1.48 times and retail investors bought only 40 percent shares of the quota set aside for them.
The company had reserved only 10 percent of the offer for QIBs which was viewed as a negative by analysts.
Abans Holdings provides NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stock broking, depositary services, asset management services, investment advisory services and wealth management services to corporates, institutional and high net worth clients.
According to Ventura Securities, a key risk for the company is that majority of the advances by its NBFC are unsecured and are not supported by any collateral that could help ensure repayment.
"The company requires substantial capital for its business and any disruption in the company’s sources of capital could have an adverse effect," it added.
The financial services firm recorded 35 percent growth in profit for FY22, compared to previous year, but revenue fell significantly by 52 percent to Rs 638.63 crore in the same period.
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