The Aadhar Housing Finance IPO launches on May 8 and ends on May 10, with a price range of ₹300 to ₹315 per share. The company raised ₹898 crore from anchor fund investors. Retail investors receive a 35% allocation, while employees receive a ₹23 discount per share.
The Aadhar Housing Finance IPO is available for subscription today (Wednesday, May 8) and will close on Friday, May 10. The IPO price range for the Blackstone-backed company is ₹300 to ₹315 per share. The Aadhar Housing Finance IPO raised ₹898 crore from anchor investors on Tuesday, May 7. Bids can be made in multiples of 47 shares, with a minimum bid of 47.
The Aadhar Housing Finance IPO has allocated 35% of the issue size to retail investors, 15% to non-institutional investors, and 50% to eligible institutional buyers. The corporation is offering a discount of ₹23 per share to its employees.
Aadhar Housing Finance Limited is a housing finance company that was established in 2010 with a focus on lower-income individuals.
The deep impact branches’ sales offices target customers in India’s tier 4 and tier 5 towns.
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As of September 30, 2023, the firm employed 12,221 Aadhar Mitras, who are compensated with referral fees for finding loans for their clients.
The organization provides a variety of mortgage financing solutions for building, remodeling, and purchasing residential and commercial properties.
As of September 30, 2023, the firm had a network of 471 branches, including 91 sales offices. These branches and sales offices service around 10,926 pin codes in India, which are spread across 20 states and union territories.
According to the Red Herring Prospectus (RHP), Aadhar Housing Finance’s listed peers include Aptus Value Housing Finance India Ltd (P/E of 31.3), Aavas Financiers Ltd (P/E of 28.1), Home First Finance Company India Ltd (P/E of 34.9), and India Shelter Finance Corporation Ltd (P/E of 33.1).
From March 31, 2022 to March 31, 2023, Aadhar Housing Finance Limited’s profit after tax (PAT) increased by 22.22%, while revenue increased by 18.22%.
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Aadhar Housing Finance IPO details
Aadhar Housing Finance’s ₹3,000 crore IPO includes an OFS (offer for sale) by promoter BCP Topco VII Pte Ltd, a Blackstone Group affiliate, for ₹2,000 crore and a fresh issue of equity shares worth ₹1,000 crore.
Promoter BCP Topco VII Pte will sell its stake in the OFS. BCP Topco, the promoter and affiliate of Blackstone-managed funds, now owns 98.7% of the pre-offer issued, subscribed, and paid-up equity share capital.
The net proceeds will be used to fund general corporate activities as well as future capital requirements for further lending.
The book running lead managers include SBI Capital Markets Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, ICICI Securities Limited, and Citigroup Global Markets India Private Limited. Kfin Technologies Limited is the registrar for this issuance.
