Aavas Financial posts a discount of 7.67% on the issue price

The housing finance company Aavas Financiers is listed at 7.67% discount on BSE today. The title debuted at a level of 758 and dropped to a low of 710 in a day on the BSE. At 10:35, the stock traded at 724.50, down 11.66% from the issue price of 821.

Compared to the opening price, the stock fell by 4.49% or 34 points. The market capitalization of the housing finance company was Rs 5,655.01. The firm raised Rs 1,734 crores through its initial public offering (IPO).

The IPO, open from 25 to 27 September, was subscribed at 97% at a price range of 818 to 821 rupees per share. The IPO involved a new issue of up to Rs 400 crores and an offer to sell up to 1,622,359,359 shares, including the anchor tranche of 63,366,439 shares. ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services, Spark Capital Advisors (India) and HDFC Bank were the merchant bankers of the show.

Aavas Financiers, based in Jaipur, provides housing loans to clients in low and middle income segments in semi-urban and rural areas. The IPO period was marked by the opening of bids due to concerns about the liquidity of other housing finance companies, which led to a feeling of weakness of the market. Aavas, a Jaipur-based company backed by private equity firm Kedaara Capital and Swiss investment company Partners Group, filed its IPO prospectus project in June.

The IPO involved the sale of 400,000,000 rupees worth of fresh shares and 16.24 million shares by private equity firms and members of Aavas management. Kedaara and Partners Group has sold 15.21 million shares of the IPO, a quarter of its stake in the company.