Mumbai: Shares of Aavas Financiers Ltd made a weak debut today, with its shares opening 7.7% lower on the BSE at Rs 758 a piece , compared to the issue price of Rs 821. Aavas Financiers IPO, which was open from September 25 to September 27 at a price band of Rs 818 to Rs 821 per share, was subscribed 97%. At 10.05 am, Aavas Financiers shares were down 12.6% at Rs 725, while benchmark 30-share Sensex traded 0.03% higher at 34,387.58. Earlier in the day, the shares touched a high of Rs 758 and a low of Rs 710.90, respectively.
Aavas Financiers’ IPO was launched in a week that saw a meltdown in stocks of non-banking finance companies. The market sentiment has taken a beating, with the Sensex and the Nifty 50 slumping 1,984 points and 654 points last week respectively.
The share sale which was aimed at raising up to Rs 1,734 crore received 97% subscription (excluding the anchor portion), data from NSE showed.
Aavas, known previously as AU Housing Finance, was the mortgage lending business of Jaipur-based small finance bank AU Small Finance Bank Ltd. In February 2016, Partners Group and Kedaara Capital acquired the company for Rs 900 crore -1,000 crore.