Weak Listing: Aavas Financiers debuts at Rs 746, 9% discount to IPO price
Housing finance company Aavas Financiers shares butchered on opening itself on Monday as the stock price debuted at Rs 746, a 9 percent discount to issue price of Rs 821.
It was on expected lines due to weak market conditions and sharp correction in NBFCs including housing finance companies after IL&FS-led liquidity fear and high valuations.
The stock was trading at Rs 719.9, down 4 percent from its listing price at 10:05 hours IST on the NSE.
On the BSE, it was quoting at Rs 711.1, down 6 percent after opening at Rs 758.
Aavas Financiers is a retail, affordable housing finance company, primarily serving low and middle income self-employed customers in semi-urban and rural areas in India.
The Rs 1,734 crore initial public offer was subscribed 97 percent during September 25-27, amid challenging stock market conditions for the entire NBFC sector.
The IPO comprised a fresh issue of up to Rs 400 crore and an offer for sale of up to 1,62,49,359 shares, including anchor portion of 63,36,439 shares. Price band for the offer was fixed at Rs 818-821 per share.