Microfinance lender Spandana Sphoorty Financial started off trade at 3.6 percent discount to its issue price , The stock opened at Rs.825 on the National stock exchange, against issue price of Rs. 856, In terms of volumes, Spandana traded with volumes of 37000 shares on the BSE and 6 Lakh shares on NSE.
As per market sentiments it was predicted that the issue will open flat or in discount. The issue was subscribed 1.6 times that indicates that there was a fine demand of the issue but the opening was not as per the investors expectations.
In the open phase the share was making new low’s but the price afterwards was volatile as the share price went to 691 then in few sessions it had recovered itself to the level of 848.40 in the closing time, that indicates huge volatility in the share price. Intraday traders were in confusion throughout the day as they can see stability in the price and no such levels are provided to exit.
Investors who were picking up this stock for long term investing might be in better position because the fundamentals of the company is really strong and the way company is progressing in rural market implies positive outlook and growth in the company.
For fresher intraday traders it proves to be a very good deal because of the volatility of this share, traders had the chance to book huge profits.
I would like to suggest the investors who want to exit can sell there shares tomorrow as there is a possibility that the share will cross the issue price and can make its all time high, investors must be active because the share has a probability that it can again come down and can settle to its original price. On the contrary for the long term investment i am very optimistic about this company that the company is going to have a major potential in their segment and they can easily outperform, so my suggestion would be to keep investing for long period of time and you have a great chance of earning good profits.