Bankia SA has won an appeal by Spanish power supply company Iberdrola SA over the losses it entailed following Bankia's 2011 IPO, El País reported.

A Spanish court had previously rejected a €12.4 million compensation claim by Iberdrola for its €70 million investment in the bank's IPO.

Bankia was bailed out in 2012 with more than €20 billion in state funds, leading to lawsuits by thousands of investors who lost money following the IPO.

The paper said that Iberdrola had argued in its appeal that Bankia's credit ratings did not signal the bank's errors in the bank's accounting methods. However the court ruled that Iberdrola was a professional investor. The company has until July 31 to launch an extraordinary appeal.