Shares of Aavas Financiers Limited listed on the bourses and had a poor debut day. The company had tapped the capital markets with its simultaneous offer for sale and fresh issue. The fresh issue was for Rs 400 crs while the offer for sale was for 1,62,49,359 equity shares in a price band of Rs 818-821. The issue had opened on Tuesday the 25th of September and closed on Thursday the 27th of September.
The company had earlier allotted 63,36,439 equity shares to 34 anchor investors comprising of 60 entities at Rs 1,821. The top allocation has been made to the erstwhile parent of the company A U Small Finance Bank Limited of 6,36,439 equity shares which corresponds to 10.04% of the total issue.
It was quite surprising that an issue which received such overwhelming support from anchor investors and saw its anchor book subscribed approximately 14 times as per press release issued by the company, was finally undersubscribed. Given that market conditions were trying, it still is difficult to digest.
The anchor demand was enough to subscribe the whole issue four times. Anyway that was history. The issue saw the total subscription at 0.97 times with QIB subscribed 2.77 times, HNI undersubscribed at 0.26 times and Retail undersubscribed at 0.25 times. There were over 87,000 applications received.
The discovered price on the BSE was Rs 758 and Rs 750 on NSE. This was a discount of Rs 63 on BSE and Rs 71 on NSE to the issue price of Rs 821. The high of the day was Rs 787.50 on BSE and Rs 787 on NSE. The lows were Rs 710 and 710.05 respectively.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 758.00 | 787.50 | 710.00 | 773.15 | -47.85 | -5.83 | 752.43 | 496064 | 71090 | 14.33 |
| NSE | 750.00 | 787.00 | 710.05 | 774.35 | -46.65 | -5.68 | 753.40 | 3534238 | 719030 | 20.34 |
| Total | 4030302 | 790120 | 19.60 |
The traded volume on the two exchanges combined was 40.30 lac shares. This was 19.08% of the IPO size and 27.26% of the non-anchor portion. Delivery volume was 7.90 lac shares which was 19.60% of traded volume. It was a mere 3.74% of the IPO size and 5.34% of the non-anchor portion. The total HNI and Retail applications were for about 26.70 lac shares and assuming the only people who sold today were these people we still have a long way to go with over 18.8 lac shares left.
The weighted average of the day’s trade was Rs 752.43 on BSE and Rs 753.40 on NSE. The closing price was Rs 773.15 on BSE, a loss of Rs 47.85 or 5.83% while on NSE it was Rs 774.35, a loss of Rs 46.65 or 5.68%.
The share has managed to survive today and considering market conditions, it could be said that the share has done reasonably well losing a mere 5.8%. If deliveries go up in the coming days and the share does not fall any further, it would have achieved its purpose.
For the battery of merchant bankers who were involved in this issue it would go down as yet another issue which closed below its issue price on listing day.
