Abans Holdings listing: Abans Holdings disappoints on debut, lists at 1% premium

New Delhi: On expected lines, Abans Holdings disappointed investors on debut as the company got listed at Rs 273 on NSE, a premium of 1% over its issue price of Rs 270 apiece. The financial service player debuted at par on BSE in Friday’s trade.

Ahead of its listing, Abans Holdings was not among the active counters in the grey market. It witnessed negligible premium in the grey market.

The company’s Rs 345.6 crore IPO was sold in the range of Rs 256-270 per share, and received a tepid response from investors, barely sailing through between December 12-15.

The quota reserved for qualified institutional buyers (QIBs) was subscribed 4.1 times while the one reserved for non-institutional investors (NIIs) and retailers was subscribed 1.5 and only 40%, respectively.

The net proceeds from the issue will be utilised towards investment in its NBFC subsidiary, Abans Finance, for financing the augmentation of its capital base to meet future capital requirements and for general corporate purposes.

The majority of the brokerage firms were dicey on the counter considering its rich valuations, high competition, low market share and lesser-known brand.

The company reported a profit after tax (PAT) at Rs 61.97 crore with a total revenue of Rs 646.23 crore for the year ended on March 31, 2022. It report a PAT at Rs 45.8 crore with a total revenue of Rs 1,331.37 crore a year ago.
For the period ended on August 31, 2022, the company reported a net profit of Rs 29.74 crore with a revenue of Rs 288.31 crore.

Incorporated in 2009, Abans Holdings, the financial services arm of Abans Group, is engaged in financial services, gold refining, jewellery, commodities trading, agricultural trading and warehousing, software development and real estate.

The company operates an RBI-registered NBFC and currently has active businesses across six countries, including UK, Singapore, UAE, China and Mauritius other than India.

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