Housing finance company Aavas Financiers listed at a discount of 7.67% on the BSE today. The stock made its debut at 758 level and fell to intra day low of 710 on BSE. At 10:35 am, the stock was trading 11.66% lower to 724.50 compared to the issue price of 821 level.
Compared to the opening price, the stock was down 4.49% or 34 points. The market capitalisation of the housing finance firm rose to Rs 5,655.01 crore. The firm raised Rs 1,734 crore through the initial public offering (IPO) route.
The IPO, which was open from September 25-27, was subscribed 97 per cent at a price band of Rs 818 to Rs 821 per share. The IPO involved fresh issue of up to Rs 400 crore and an offer for sale of up to 1,62,49,359 equity shares, including anchor portion of 63,36,439 equity shares. ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services, Spark Capital Advisors (India) and HDFC Bank were the merchant bankers to the issue.
Jaipur-based Aavas Financiers offers housing loans to customers from low and middle-income segments in semi-urban and rural areas. The IPO period saw opening of bids amid concerns over the liquidity of other housing finance firms which led to weak market sentiment. Jaipur-based Aavas which is backed by homegrown private equity firm Kedaara Capital and Swiss investment company Partners Group filed its IPO draft prospectus in June.
The IPO involved sale of fresh shares worth Rs 400 crore and a sale of 16.24 million shares by the private equity firms as well as members of Aavas' management. Kedaara and Partners Group sold 15.21 million shares in the IPO, or one-fourth of their stake in the company.