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Shares of Aptus Value Housing Finance made a weak debut on the stock market despite a strong response to its initial public offering (IPO).

The retail-focused housing finance company’s stock got listed at a 6.5 per cent discount to the issue price of Rs 353 per share. The stock opened at Rs 329.95 on the Bombay Stock Exchange (BSE) and Rs 333 on the National Stock Exchange (NSE).

The stock was trading at Rs 345.10, down over 2.24 per cent on the NSE and Rs 344.95 on the Bombay Stock Exchange at 11:05 am. While Aptus Value’s stock has made a weak market debut, analysts remain optimistic about the company’s future.

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Aptus Value’s IPO was subscribed 17.20 times during August 10-12, highlighting that it received a strong response from investors.

The portion reserved for qualified institutional buyers and non-institutional investors were subscribed 32.41 times and 33.91 times, respectively. The retail portion was subscribed 1.35 times.

It may be noted that the company raised Rs 2,780 crore through its IPO, which consisted of a fresh issue of Rs 500 crore and an offer for sale of Rs 2,280 crore. The company plans to use the money raised from the public issue to augment its tier 1 capital requirements.

The company is an entirely rural-focus housing finance company. It primarily serves low and middle-income self-employed customers in the rural and semi-urban markets of India.

A majority of the brokerage had given a “subscribe” recommendation to the stock, citing its long term return potential, growth and concrete financials.

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India today

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