The net proceeds from the fresh issue will be utilised towards augmenting the company's capital base to meet future requirements and for general corporate purposes, the company had said.
Axis Capital, ICICI Securities, IIFL Securities, JM Financial, IndusInd Bank and YES Securities India were the manager to the offer.
As per reports, during FY19 (over FY18-19), the net interest income, pre-provisioning profit and net profit of the company grew at a robust pace of 87.5 per cent to Rs 640 crore, 109.8 per cent to Rs 519 crore and 66 per cent to Rs 312 crore, respectively.
Analysts at Centrum Broking had suggested investors to subscribe to the IPO from a long-term perspective.
"At upper end of the price band, Spandana Sphoorty (SSFL) is valued at 2.7x of FY2019 BV (Pre-IPO) and on post dilution basis at 2.4x of Book value, whereas close peers i.e. CreditAccess Grameen is trading at 3x FY2019 BV. Given SSFL’s successful exit from Corporate Debt Restructuring (CDR) in March 2017, healthy net interest margin (NIM), return ratio and low penetration of financial services in rural India coupled with a well-capitalised balance sheet and experienced management; we believe the company has an excellent base for next level of growth. Based on the positive factors, we assign SUBSCRIBE rating to the issue," Angel Broking had said in an IPO note.
Eventually, the stock settled at Rs 854.75 apiece, up 3.61 per cent.