Spandana Sphoorty Financial Limited which had tapped the capital markets with its simultaneous offer of a fresh issue of Rs 400 crs and offer for sale of 93,56,725 equity shares was just about subscribed. The QIB portion was subscribed 3.11 times while the remaining two remained undersubscribed. HNI portion was subscribed 0.55 times while retail was subscribed just 0.09 times.

Market conditions have been bad and quite tough. While for the sake of blaming one could always say that the change in subscription through UPI was responsible for the poor retail subscription, it should be noted that while Spandana received just 21,727 forms, the previous issue from Affle (India) received 2.97 lac forms. Incidentally Affle (India) was the first issue which came under the UPI regime. The price band for Spandana was Rs 853-856. The issue had opened on Monday the 5th of August and closed on Wednesday the 7th of August.

Earlier the company had allotted 42,08,886 equity shares to 15 anchor investors comprising of 18 entities. The highest allocation was made to four investors of 4,43,938 equity shares representing 10.5% of the anchor allocation to Wells Fargo, Bajaj Allianz Life Insurance, Goldman Sachs and ICICI Prudential Insurance.

Very clearly QIB’s whether they applied in anchor or the normal portion were enthused by the issue while non-institutional investors shunned the issue. It is for the merchant bankers to understand why there was complete apathy from this segment of investors.

The full details of subscription are given below: –