Aadhar Housing Finance IPO
: Aadhar Housing Finance, backed by
Blackstone
, is launching an initial public offering (IPO) worth Rs 3,000 crore. You can subscribe to the IPO from May 8, and the price band has been fixed between Rs 300 and Rs 315.
As per an ET report, the IPO aims to raise Rs 3,000 crore, and the
subscription period
will end on May 10. The anchor book will open on May 7, with the finalisation of the basis of allotment scheduled for May 13.
Investors can expect refunds to begin on May 14, and the company’s shares are likely to list on stock exchanges on May 15.
Aadhar Housing had initially submitted its IPO proposal to
SEBI
in January 2021, and by May 2022, it had received approval to raise over Rs 7,000 crore. However, the company did not move forward with those plans.
The IPO includes two components: a fresh issue of shares worth Rs 1,000 crore and an
offer-for-sale
(OFS) of shares valued at Rs 2,000 crore by the promoter,
BCP Topco
.At the upper limit of price brand, the company’s total valuation exceeds Rs 13,000 crore.
The proceeds from the IPO will be used to fund future capital requirements for lending and general corporate purposes.
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Aadhar Housing Finance
is a housing finance company (HFC) that primarily focuses on low-income housing, with
loan amounts
typically under Rs 15 lakh. During the six months ending September 2023, it had the highest
assets under management
(AUM) and net worth compared to its competitors.
The company offers a variety of mortgage-related loans, such as those for buying and building homes, as well as for home improvement and expansion. It also provides loans for constructing and acquiring commercial properties. With 471 branches, including 91 sales offices, the company has a large network to serve its customers.
A Crisil analysis found that Aadhar Housing Finance had the most active accounts among its peers in FY2023. The company primarily serves customers from economically weaker and low-to-middle-income backgrounds.
The average loan amount at Aadhar Housing Finance was Rs 9 lakh, with an average loan-to-value ratio of 57.6% as of September 30, 2022, and 58.1% as of September 30, 2023.
The book-running lead managers for this IPO are ICICI Securities, Citigroup Global Markets, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), and SBI Capital.
