Spandana Sphoorty Financial Limited which is tapping 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 completed anchor allocation. The price band is Rs 853-856. The issue opens on Monday the 5th of August and closes on Wednesday the 7th of August.

The company 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.

Spandana Sphoorty Financial Limited is a micro finance company. The company was admitted to CDR after the A P crisis in 2010 and successfully exited the same. It is now promoted by the original promoter Padmaja Gangireddy and corporate promoter Kanchenjunga Limited who has Kedaara driving the business. The shares are being offered at a price earnings multiple of 15.96-15.99 times based on consolidated earnings per share of Rs 53.35 for the year ended March 2019. The issue looks interesting and, in my opinion, maybe compared with Credit Access.

The full list of anchor allotment with the shares allotted is given below: –

Affle (India) Limited which had tapped the capital markets with its simultaneous fresh issue and offer for sale was subscribed over 86 times. Earlier the company had allotted 27,72,483 equity shares at the top end of the price band of Rs 740-745 to 15 anchor investors comprising of 28 entities.

The fresh issue was for Rs 90 crs and the offer for sale of 49,53,020 equity shares. The issue had opened on Monday the 29th of July and closed on Wednesday the 31st of July.

The issue saw the QIB portion subscribed 55.31 points, HNI portion a massive 198.69 times and Retail 10.96 times. There was a total of 2.97 lac forms which meant that the retail portion in terms of number of applications was subscribed 9.64 times. The overall issue was subscribed 86.49 times.

This was the first issue under the UPI regime where investors had to get the money blocked through the UPI app. With anything new being introduced, there are always issues and so also with this issue. A large number of applications have not been processed for various reasons and one wonders what steps the regulator would take.

In the anchor allocation, the largest allocation was made to Aberdeen and Franklin Templeton who were each allotted 3,05,640 shares or 11.02% of the anchor allocation. They were followed by seven investors who were allotted 2,28,200 shares or 8.23% and the last category of 6 investors were allotted 93,967 equity shares or 3.39% of the anchor book.

There is an existing investor in the company, Malabar India Fund who was allotted 2,28,200 shares.

The company is a global technology company and derives the largest part of its revenue from consumer platform. This platform provides new consumer conversions (acquisitions engagements and transactions) through relevant mobile advertising. It has in the last 12-18 months completed three acquisitions which would going forward result in margin expansion as the margins currently from these acquired businesses were lower compared to the parent’s core business. The issue is a Newgen business and is currently focused on the smart phone or hand held device.

The full details of the subscription are given below: –