Aadhar Housing Finance, backed by Blackstone, is gearing up for its much-anticipated initial public offering (IPO), set to open for subscription on May 8. With an aim to raise Rs 3,000 crore, the company has established a price band of Rs 300-315 per share.
Investors will have the opportunity to subscribe to the IPO until May 10, with the anchor book opening a day earlier on May 7th. Following the closure of subscriptions, the basis of allotment is scheduled for finalization on May 13th, while refunds are expected to be initiated on May 14th. The company is poised to make its debut on stock exchanges on May 15th.
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Having initially filed draft papers with the Securities and Exchange Board of India (Sebi) in January 2021, Aadhar Housing received regulatory approval in May 2022 to raise over Rs 7,000 crore. However, the plans were put on hold at that time.
The IPO consists of a fresh issue of shares amounting to Rs 1,000 crore, along with an offer-for-sale (OFS) of shares worth Rs 2,000 crore by promoter BCP Topco. At the upper end of the price band, the company’s valuation exceeds Rs 13,000 crore.
The net proceeds from the offering are earmarked for meeting future capital requirements associated with onward lending and general corporate purposes.
Aadhar Housing Finance specializes in providing housing finance solutions tailored for the low-income segment, with loan sizes typically below Rs 15 lakh. It boasts the highest assets under management (AUM) and net worth among its peers, based on analysis spanning the six months ending September 2023.
Offering a diverse portfolio of mortgage-related loan products, including residential property purchase and construction loans, home improvement loans, and loans for commercial property construction and acquisition, the company operates through a network of 471 branches, including 91 sales offices.
According to Crisil’s analysis of a peer set, Aadhar Housing Finance held the highest number of live accounts in FY2023, predominantly serving economically weaker and low-to-middle-income customers.
As of September 30, 2022, and September 30, 2023, the average ticket size of loans stood at Rs 9 lakh, with average loan-to-value ratios of 57.6% and 58.1%, respectively.
ICICI Securities, Citigroup Global Markets, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), and SBI Capital are acting as the book-running lead managers for the IPO.
Published By:
Koustav Das
Published On:
May 2, 2024
