MUMBAI (Reuters) – Shares of Aavas Financiers Ltd dropped as much as 13.5 percent in early trade on their market debut after the mortgage lender raised 17.34 billion rupees ($235 million) from its initial public offering in late September.

The stock was trading at 722.00 rupees, down 12.06 percent, at 0434 GMT.

The IPO was subscribed 0.9 times at close amid fears of non-banking financial companies facing a credit crunch.

The company provides housing loan to customers belonging to low- and middle-income segment in semi-urban and rural areas.

Reporting by Swati Bhat

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