After lukewarm response to Spandana IPO, other MFIs re-evaluate IPO plans

In the next few quarters, at least two other MFIs, Arohan and Muthoot Microfin are planning for an IPO

Micro-finance institutions (MFIs), planning to launch their initial public offerings (IPOs), have decided to take it slow after the lacklustre performance by Spandana Sphoothy. 

The Hyderabad-based MFI’s Rs 1,200-crore IPO, which closed on August 7, was subscribed just 1.05 times. The main reason for this performance was choppy markets as well as lack of enthusiasm from retail investors, who subscribed to only 10 per cent of the quota reserved for them.

In the next few quarters, at least two other MFIs, Arohan and Muthoot Microfin, had planned IPOs. But now, they plan to wait for more clarity. According to Sadaf Sayeed, CEO,