Spandana Sphoorty IPO: Growth potential, low NPAs make Spandana a good buy

ET Intelligence Group: Spandana Sphoorty Financial, a microfinance company, plans to raise Rs 400 crore by issuing fresh equity shares to increase the capital base and for general corporate purpose. The promoters will also sell a portion of existing shares worth up to Rs 801 crore. The company runs a high growth business with strong financial parameters compared with some of its peers. Given a reasonable valuation, long-term investors may consider the issue. BUSINESS AND FINANCIALSThe company was incorporated in 2003 in Hyderabad with Andhra Pradesh (AP) as the major…

ipo: Affle IPO a good bet on high growth sector, but richly valued

ET Intelligence Group: Affle (India), a provider of mobile advertising solutions, plans to raise Rs 90 crore through fresh issue of shares to fund working capital and general corporate purposes. Its Singaporebased parent, Affle Holdings, will reduce its stake in Affle (India) to 75.6 per cent from 83.5 per cent by offloading shares worth up to Rs 369 crore. The company’s operations are growing fast and profitable with strong return ratios and no long-term debt. Its demanded valuation appears to take into account the future growth potential. Considering these factors…