Aavas Financiers shares make weak debut, drop 6%

Shares of housing finance company Aavas Financiers made a weak debut at the bourses Monday and ended 6 per cent lower against the issue price of Rs 821 per share.

The stock listed at Rs 758, a fall of 7.67 per cent from the issue price on BSE. During the day, the scrip plunged 13.52 per cent to Rs 710. It finally ended 5.82 per cent lower at Rs 773.15.

On NSE, shares of the company settled at Rs 771, plunging 6 per cent as compared to the issue price. The stock had listed at Rs 750, a discount of 8.64 per cent from the issue price.

In terms of equity volume, 4.96 lakh shares of the company were traded on BSE and over 35 lakh shares changed hands on NSE during the day.

The company's market valuation stood at Rs 6,038.91 crore on BSE.

Aavas Financiers' Rs 1,734 crore initial public offer ran from September 25 to September 27, and was subscribed 97 per cent.

Price band for the offer was fixed at Rs 818-821 per share.

ICICI Securities Limited, Citigroup Global Markets India Private Limited, Edelweiss Financial Services Limited, Spark Capital Advisors (India) Private Limited and HDFC Bank Limited were the book running lead managers to the issue.

Aavas Financiers offers housing loans to customers from low and middle income segments in semi-urban and rural areas.