The initial public offering by Spandana Sphoorty got fully subscribed on the third day of the offer on Wednesday. The company got bids for 80,74,507 shares, against the issue size of 1,01,07,486 shares, which was 1.02 times of the total issue size.
The initial public offering by Spandana Sphoorty, a microlender focusing on rural women, got fully subscribed on the third day of the offer on Wednesday. The company got bids for 80,74,507 shares against the issue size of 1,01,07,486 shares, which was 1.02 times of the total issue size. While the qualified institutional buyers or QIB portion was subscribed 3.05 times, non-institutional investors (NII) portion was subscribed 0.55 times. Meanwhile, the retail quota limit was subscribed 0.09 times at around 4 pm. The Hyderabad-based company had fixed a price band of Rs 853-856 per share for the IPO.
Spandana Sphoorty is planning to raise around Rs 1,200 crore from the public. Last week, the company garnered Rs 360.28 crore from 18 anchor investors. The issue comprises an OFS of up to 59.67 lakh shares by Kangchenjunga Limited, which is the corporate promoter selling shareholder, up to 14.23 lakh shares by Padmaja Gangireddy, up to 7.96 lakh shares by Vijaya Siva Rami Reddy Vendidandi, up to 7.83 lakh shares by Valiant Mauritius Partners FDI, up to 1.32 lakh shares by Helion Venture Partner II, up to 1.29 lakh shares by Kedaara Capital Alternative Investment Fund and up to 1.23 lakh shares by Helion Venture Partners.
The company will use the net proceeds from the offering towards strengthening the company’s capital base so that it can meet the future requirements and general corporate purposes. Spandana Sphoorty’s shares are proposed to be listed on BSE and NSE. Axis Capital, ICICI Securities, IIFL Securities, JM Financial, IndusInd Bank and YES Securities India are managing the IPO.
To address geographic concentration risk, the company has specified exposure caps at the state, district and branch levels. “For instance, the gross loan portfolio of each state must not exceed 22.5% of our total portfolio (except for AP and Telangana) or 100% of our net worth. The gross loan portfolio for each district must not exceed 2.5% of our total portfolio and 7.5% of our net worth,” Padmaja Reddy, founder and managing director, said.